Bus fares Increased

Private bus fares will be increased by 27.2 per cent from 27th of May 2008 in the wake of Sunday’s fuel price hike, Private Bus Owners Association President Gamunu Wijeratne said yesterday after he met Transport Minister Dallas Alhaperuma and National Transport Commission officials.

Accordingly the minimum fare will be increased from Rs 6 to Rs 7 while the maximum fare from Rs 32 to Rs 42. But fares on CTB buses have been increased only by 17% considering the hardships faced by the commuters.

A Ministry spokesman said the Transport Minister, NTC officials and Private Bus Owners Association representatives were due to hold a joint news conference today to explain the national policy on bus fares and circumstances which led to the fare hike

He said the NTC is expected to officially announce the new fares on SLTB and private buses today while the revised rail fares are to be announced shortly by Sri Lanka Railways.

Minister Alahapperuma told Daily Mirror the government would further subsidize the public transport sector and thus reduce the burden on the commuters.

“The fare increase of the public transport sector is inevitable but we will do our best to reduce the burden on commuters. The Treasury has agreed to continue subsidizing the transport sector as the government does intend passing the full impact of the fuel increase to the commuters. The government is absorbing 50% of the world market fuel price by permitting the CPC to limit the price increase on a litre of diesel to only Rs. 30. The Transport Ministry meanwhile was able to convince the Treasury of the need to further subsidize the public transport sector,” Minister Alahapperuma said.

He said the Ministry had maded several suggestions to President Mahinda Ranapaksa on how best to offset the burden on the economy following the huge increase of fuel prices in the world market.

“One option is to pay a monthly travel allowance of Rs. 30,000 to public officers entitled to an official vehicle. The rationing of fuel was another option but it has to be carefully thought through before implementing it. The public must be encouraged to use public transport instead of their private vehicles. The traffic in cities annually use up fuel worth some Rs. 15 billion and this is a heavy burden on the economy,” the Minister said.