PM to consider feasibility of 20-baht MRTA fare

FRIDAY, SEPTEMBER 01, 2023

New Prime Minister Srettha Thavisin has asked for time to study the feasibility of the 20-baht Mass Rapid Transit Authority of Thailand (MRTA) fare policy on which he will have to consult with 10 coalition parties before making a budget assessment.

The Department of Rail Transport supports the policy and states that it is feasible if the government can provide an annual subsidy of 5.4 billion baht.

The Pheu Thai Party proposed the 20-baht Bangkok metro policy during its election campaign and informed the Election Commission that it would require a budget of 40 billion baht, along with an additional 8 billion baht annually from the regular budget allocation. The party emphasised the need for budget allocation, as the benefits outweigh the costs.

Pichet Kunathammarak, director-general of the Department of Rail Transport (DRT), stated that while the 20-baht fare policy is viable, a clear government decision on target groups and the timing of implementation is necessary. These aspects, as well as the duration of the policy, need to be clarified before considering the budget allocation or compensating the private sector.

The DRT has studied the suitability of the policy for various target groups:

Providing a 20-baht fare exclusively for low-income individuals holding state welfare cards is the most feasible option, with the software and database systems ready for such an implementation.

Currently, the government provides a monthly travel allowance of 750 baht for state welfare cardholders, but train travel isn't popular because the average fare is considered too high at 30-40 baht. Reducing the fare to 20 baht per trip would motivate more people to use the train service.

Providing a 20-baht fare during specific time frames or on certain routes owned by the state (e.g., the Red Line and MRT Purple Line) might require considering monthly tickets for regular commuters, with an average current price of 25 baht per trip. In this case, the government would compensate the private sector with a relatively small amount.

Supporting all groups would cost around 5 billion baht annually, according to the DRT.