Fare rises ‘key to bus quality’, study finds

Current prices ‘based on outdated cost list’

A new set of higher standard costs should be used in calculation for a “just” bus fare hike, a study commissioned by the Department of Land Transport (DLT) says.

The figures which authorities have been using to cap bus fares are outdated, it said.

Also, public bus operators have not been allowed to hike fares because most buses in the capital are old and substandard in quality, project head and Smart Cities Research Centre director, Agachai Sumalee, said.

The study finds that if fares were based on “true” costs, they would be five to six baht higher, he said.

The idea was floated at a public hearing, where the results were presented to privately-owned public bus operating firms. The DLT had earlier commissioned King Mongkut’s Institute of Technology Ladkrabang (KMITL) to conduct research on how to improve the quality of bus services in the capital.

“From our research, much of the reasoning for official price hikes centres around fuel prices,” Mr Agachai said.

“However, there are other factors to consider, such as employee salaries and other maintenance costs, which have increased.

“Operators have been trying to cope, so it is likely the overall lack in service quality is reflected in the fact they have insufficient funds,” he added.

He said operating costs have to be at least 10-15% higher than present rates on average for operators to better pay bus drivers and conductors, and buy new vehicles.

Study results report average costs for 12-metre, air-conditioned buses include 16,500-baht salaries for employees and varying fuel costs between compressed natural gas (CNG) buses and dieselpowered buses.

CNG buses cost about 4,481 baht to run per day, and diesel buses 6,210 baht.

According to the study results, actual costs are significantly higher, at 6,764 and 8,493 baht for CNG and diesel buses, respectively.

The 10-month study, which began last year, has around one month left before results are compiled and submitted to the DLT.

DLT deputy director-general Cherdchai Sanunsrisakorn yesterday admitted current figures do not reflect present operation costs. According to him, if price hikes are required, they must be phased in gradually rather than in one go.

Transport Minister Arkhom Termpittayapaisith earlier said a new structure for price hikes could be developed based on the study results. At present, boats are the only mode of public transport which can hike fares according to diesel prices.

Patrawadee Klomjaroon, president of the Association of Passenger Bus Operators, said yesterday several operators are in debt because they have not been able to increase ticket fares in four years.

Late last month, the association travelled to the Transport Ministry to demand a 4-baht fare hike for buses, citing increasing fuel prices.

The Bangkok Mass Transit Authority (BMTA), the capital’s main public bus operator, has been operating under an over 100-billion-baht debt.