The fare formula is used to determine the amount of fare changes (fare adjustment quantum) for the year during the annual are Fare Review Exercise. It reflects key cost drivers such as manpower costs, energy costs and the general operating costs of providing public transport services. The fare adjustment quantum for the year, as derived from the formula, together with any deferred fare adjustment quantum from previous fare review exercise (if any), will form the maximum allowable fare adjustment quantum that can be granted. PTC puts a cap on the amount fare changes that can be granted each year, ensuring that fare adjustments – if any – are reasonable and protect the interests of commuters and keep pace with cost changes in the industry.