Transport Operators to Seek Higher Fares
JAKARTA ~ Public transport operators are preparing to raise fares in anticipation of a government hike in the price of fuel, a transport association official said this week.
“We plan to submit a demand for a fare increase to the government soon after a fuel price increase is announced,” the secretary general of the Jakarta Public Transport Association, TR Panjaitan, said on Wednesday.
The government said earlier this week it planned to cut its generous fuel subsidies in the face of soaring oil costs, with discussions underway about a resulting hike in fuel prices of up to 30 percent.
The government has so far not set a date for the price rise.
Panjaitan said a rise in fuel prices could create a “multiplier effect,” pushing up costs for spare parts, lubricants and other items needed to operate public transport fleets.
“We are currently preparing the fare increase percentage based on various scenarios. If fuel prices are increased by 30 percent, our fares would approximately be raised by about 20 percent,” Panjaitan said.
Indonesia last increased the fuel price by a massive 126 percent in 2005, igniting widespread protests.Filed under: The Nation