I REFER to recent news reports on how a fall in oil prices has affected energy businesses.

Whenever public-transport operators submit proposals for fare increases to the Public Transport Council, an increase in oil prices has always been one of the reasons cited for rising operational overheads.

It was therefore puzzling when Transport Minister Raymond Lim said recently that there is no direct correlation between falling oil prices and a drop in public-transport fares.

Oil prices are expected to head south, and consumers will be expecting fares and electricity tariffs to drop.

While electricity tariffs are set to fall from January to March next year, the methods of calculating the tariffs are inconsistent and not transparent.

There has also been no sign that fares will be cut.

A challenge for the authorities will be getting the public to wholeheartedly accept that the arguments behind retaining current fares and revising electricity tariffs are fair and reasonable.

Mr Teo Kueh Liang

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