Thai Transport Minister orders cut in interprovincial bus service fares

[webfact]

Transport minister orders cut in interprovincial bus service fares



BANGKOK: -- The Ministry of Transport has decided to lower fares of interprovincial buses operated by the Transport Co and its concessionaries by 2-3 satang per one kilometer, effective from August 20.

Transport Minister ACM Prajin Juntong said the ministry’s latest study on cost of each mode of public transport suggests the fare cut for buses operated by the Transport Co and its concessionaries by two-three satang per one kilometer due to the recent diesel price drop.

He said he will ask for an approval from the central land transport committee on Thursday and the new interprovincial bus fares should become effective on August 20.

But the fare cut will not apply to shuttle bus service of Bangkok Mass Transit Authority (BMTA) in the capital.

Most BMTA buses are fuelled by natural gas for vehicles (NGV) and in the past it did not raise bus fares like other modes of public transport and it is also facing operational losses, the minister explained.

Meanwhile, the Transport Ministry will also consider adjusting fare rates of boat services in the Chao Phraya River in Bangkok next week.

The ministry is expected to cut regular boat fare by 1 baht and cross-river fare by 50 satang.

In a related development president of Land Transportation Association of Thailand Mr Apichart Phrairungruang, said truck operators will also cut service fee due to the cheaper diesel price.

He said that most trucks are fuelled by diesel so the association will consider reducing fee for logistic service operated by trucks by five percent.

But Mrs Sujinda Cherdchai, president of interprovincial bus operators association, said bus operators are ready to comply with the new fare.

However, the association will next week ask the Transport Co to reduce fee charged on buses operated by its concessionaries and to exempt buses that suspend their service from requirement to have insurance coverage while preserve their status as inter provincial bus, she said.

Source: http://englishnews.thaipbs.or.th/transport-minister-orders-cut-in-interprovincial-bus-service-fares


-- Thai PBS 2015-08-12

[billd766]

I hope that it doesn't drop to 1 baht per km.

When I take the first class bus from Klong Lan to BKK the fare is 286 baht and that includes a snack and a drink on the first leg and then a free meal half way down. The distance is over 350 km so I will have to pay more. The second class fare is 223 baht in an older bus with no snack or meal.

The price will have to go up for us out here in rural Khampaeng Phet.

[chainarong]

Instead of the relevant transport companies applying for fare or freight adjustment to the Transport Department for approval , the Transport Minister just wanders out waves a red flag and gives out new fare structures , who cares about the bottom line.

[maoro2013]

Tampering with market forces again. Governments are not good at this, particularly Thai governments.

[BuaBS]

So diesel is down 20 % , and fares go down 0,03B/km , that's 30 B on a 1000B ticket = 3 % !! Gee thanks ministry of transport !!

I can start saving again ....

[mango66]

Oil goes down - prices go down for a satang

oil price up, fares go up for a baht,

Same with fast ready food, gas price goes down - food price remains,

Gas price goes up 55 - food price goes up 20% :

Thats 3rd worl country style !!

[Srikcir]

" it is also facing operational losses"

So by not allowing the bus services to recoup some of its losses through lower fuel costs, they have their fares cut due to lower fuel costs.

The almost immediate fare cuts are destructive and a good way to shut down unprofitable services.

Hopefully, the central land transport committee will reject the cuts for now and work with the providers as to when cuts might be appropriate without causing greater unprofitability. But I doubt it. The Junta has all of government so focused on "giving happiness the the people" that it can't see the profit side of businesses.

Edited August 13, 2015 by Srikcir