Cabinet Defers Subway Fare Rise, Passengers Refunded

Cabinet defers subway fare rise, passengers refunded

BANGKOK: -- The cabinet on Tuesday approved a new fare rise of Bangkok's subway system, but resolved that the fare hike be deferred for one month and passengers be refunded for the differentiated service costs over the past two days.

The cabinet, at its weekly meeting here, gave the green light for Bangkok Metro Co., Ltd. (BMCL), the operator of the city's underground train service, to raise its fare--from Bt14-36 to Bt15-39--in accordance with a concessionary contract the company had concluded with the Mass Rapid Transit Authority of Thailand (MRTA), which oversees the subway system, Government Spokesman Mr. Surapong Suebwonglee told journalists after the cabinet meeting.

The cabinet, however, resolved that passengers must be informed of the new fare rise 30 days in advance.

This means that the new fare hike will be legally effective in early August.

The MRTA and BMCL are, thus, to consult with each other on a refund to passengers for the differentiated service costs they had paid over the past two days, according to Dr. Surapong.

BMCL began to impose the new fares on passengers on July 3--before the cabinet's resolution.

BMCL announced Tuesday after acknowledging the cabinet's resolution that the company would refund the differentiated service costs to passengers--at around Bt200,000-300,000 a day--and would reduce the fares to the previous level from Wednesday (July 5).

MRTA board chairman Anchalee Chavanich told journalists that MRTA had agreed to compensate BMCL at the rate of Bt200,000-300,000 daily over the 30-day period when the new fare hike is to deferred.

"BMCL raised the fares on July 3 in accordance with the concessionary contract, but the law on the establishment of the MRTA in 2000 requires that any new fare rise be effective 30 days after a cabinet approval, which must be announced to the public," Ms. Anchalee explained.

"So, to maintain the public's interest and avoid any problem, MRTA has agreed to pay the compensation to BMCL over the 30-day period, while BMCL has cooperatively agreed on the passengers' refund for the differentiated service costs over the past two day," the MRTA board chairman said.

--TNA 2006-07-05