FRIDAY, April 19, 2024
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Transport officials rush to finalise bus review as 

Transport officials rush to finalise bus review as 

TRANSPORT officials say they will speed up a review on bus fares that takes into account concerns by transport operators over rising oil prices.

The Ministry of Transport said it was now aiming to finish the study in July, with the announcement following discussions yesterday with representatives of the Thai Bus Operators Association and The Transport Co Ltd.
The operators say they have been hit by high costs since last year, since the steady rise in oil rises, but fares have been capped.
Transport Minister Arkhom Termpittayapaisith said: “The Ministry of Transport understands the problem and will rush to finalise the review of the bus fare structure, which should be in line with costs.”
Regarding fuel costs, the ministry has had discussions with the Ministry of Energy, which uses a fund to maintain the diesel price at below Bt30 per litre and has been encouraging operators to use cheaper biodiesel at Bt20 at litre, he said.
Sujinda Cherdchai, the president of the Thai Bus Operators Association, said after the discussions that the results would be relayed to its members. She understood there would be a further meeting within a week or two and that there were doubts over the use of the biodiesel at Bt20 a litre on concerns over possible damage to vehicle engines.
A fare rise based on the formula of Bt0.10 per kilometre has been proposed, reflecting the operators’ inability to shoulder the burden of high oil prices.
The diesel price had stayed at Bt29.79 per litre since May 19, 2010, but was increased by Bt10.10 from February 1, 2016.
“From February 2016, the (bus) operators have not increased their fares, while the oil price has continued rising,” Sujinda said. “More than 30 per cent of the bus operators have terminated their businesses from early 2017 to February this year.”
Sujinda said that the proposed fare rise is not expected to have much impact on consumers, given the high competition from low-cost airlines and operators of public vans. The bus operators see the fare rise as reasonable, she said.
The Transport Department’s registered buses now number more than 10,000. Of the total, 5 per cent uses natural gas vehicle (NGV) and 95 per cent use diesel.
Yoo Chienyuenyongpong, president of the Asean Trucking Federation (ATF), went to Ministry of Transport to ask the government to use the Oil Fund to help relieve the problems caused by the rising diesel prices. Nowadays, the energy cost in transportation accounts for 50-55 per cent of total operating costs.
The transportation cost per trip has risen by 7 per cent on average. About 5 per cent goes on oil costs and 2 per cent to intercity motorway tolls.
The federation has asked the government to sustain the appropriate diesel price within four months as a means to give time for the operators to adjust,” said Yoo, adding that further discussions would be needed after that.
Charoenporn Charoentham, managing director of the shuttle boat service Chao Phraya Express Boat, said that if the diesel price rises to more than Bt29 per litre for more than 15 days, express boat operators may have to raise their fares by Bt1.
Chavalit Maetayaprapas, executive of the Khlong Saen Saep shuttle boat operating company Krobkrua Khonsong, shares this view and plans to meet the Marine Department to ask for a fare rise of Bt1 per trip.
An anonymous source from the Ministry of Energy said that the ministry is monitoring crude prices closely after pressure from truck and bus operators for the proposed use of the Oil Fund to sustain the diesel price.
According to the Electricity Generating Authority of Thailand, a crude price of close to US$80 per barrel may be reached within the next six months.
 

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