Private bus companies raise fares to 500 MNT


After the recent strikes of Autobus-1 state-owned bus company and several private companies, the Union of Big Bus Operators (UBBO) has announced that bus transportation fares would be raised to 500 MNT on Wednesday. However, administrators of the Ulaanbaatar City Transportation Authority (UCTA) met delegates of the union and requested that they postpone the increase until after Tsagaan Sar, which the union declined.
Autobus-1 is waiting for approval of the official decision to increase their fares, and their buses are still charging 400 MNT from passengers. The private companies moved ahead with the fare increase on Wednesday.
Currently, over 210,000 citizens, including the elderly, the disabled, police and students, are exempt from paying bus fares as the government compensates bus companies for their transportation costs. The state provided 53 billion MNT in compensation to 23 companies last year.
This year, the same amount of compensation is being allocated from the 2014 state budget, calculating fares at 400 MNT for each passenger. But bus operator companies are refusing to take the compensation unless the amount is revised and calculated with the newly increased fare.
J.Damdinsuren, vice director of UBBO, noted that no government organization is willing to solve this issue. “The government says public transportation is a matter of municipal administration, while the government is in charge of all budget issues for the transportation sector. Public transportation ticket prices have been shifted into a free structure so that there is no specific administrative body in charge of setting the ticket price. So this is our only chance to increase the ticket price. Though UCTA ought to manage this issue, its contract with bus operator companies is now expired. This is the time for us to tackle our problem and raise bus fares. If we think of the public and postpone the increase, we will not be able to receive the additional 14 to 15 billion MNT compensation calculated for 500 MNT fares from the 2014 budget. Therefore, we have no other option but to increase the price if we want to have appropriate compensation based on the revised bus fare when the 2014 budget is approved in February.”

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Posted by on Jan 24 2014. Filed under Онцлох мэдээлэл. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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