LATRA CCC offers alternatives to bus fare hike proposal

DAR ES SALAAM: CONSUMER Consultative Council of the Land Transport Regulatory Authority (LATRA) has advised bus operators to consider using natural gas and electricity to run their vehicles so as to reduce running costs instead of proposing fare hike.

Speaking during a stakeholders’ meeting in Dar es Salaam on Wednesday to discuss proposed new fares, the LATRA CCC Executive secretary, Mr Daud Daudi, said use of alternative energy would be a viable option to help bus operators reduce operating cost in the wake of increasing fuel prices.

Mr Daudi further suggested that the operators may also consider proposing to the government to reduce some taxes and fees imposed on their businesses.

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The LATRA CCC recommendations came as response to request from some bus operators to increase upcountry bus fares due to, among other reasons, soaring operating costs worsened by rising fuel prices.

Speaking as guest of honour at the meeting, Dar es Salaam Regional Commissioner Albert Chalamila asked the LATRA and the stakeholders of land transport services, including car owners, to consider consumers of the service when proposing fare increase.

“When you discuss the issue of fare, you should also look at the current economic situation of the consumers, LATRA should be in the middle between the government, citizens and transport stakeholders for better coordination,” said Mr Chalamila.

He also said that the doors were open for the stakeholders to have an audience with the LATRA about what they think is important to do, upon which the authority should come forward to make clarifications.

“If there are things that you do not understand, resolve amicably by following the existing laws and regulations,”

“Your discussions should focus on the improvement of the law and discuss things that will bring productivity because that is when you will be able to find a solution,” he said.

At the yesterday’s meeting, those who spoke on behalf of bus operators, included Mr Severene Ngallo, who is Director of ABC Upper Class company.

Mr Ngalo argued that their proposal for fare increase was based on the fact that the current fares do not match with the capital they invested as well as operating costs.

He proposed that the price should increase to 92.84/- per km from current 36.96/- set by LATRA.

He stressed that the company bought upcountry bus worth 500m/- which it paid 50 per cent as upfront and the remaining amount is paid through the 18-per cent-interest loan together with other expenses, thus necessitates introduction of new prices.

Additionally, Mr Isack Urassa, a representative from the Happy Nation Company, cited shortage of the US dollar in the market as among the reasons for the proposed bus fare hike.

Mr Urassa suggested that that the fare should be 84.06/- per km from current 27.18/-.

“We bought buses on loan when exchange rate for dollar was below current exchange rate, this affects us when we pay back loans in terms of dollar,” said Mr Urassa.

On his part, LATRA’s Managing director Habibu Suluo said he received the recommendations from the meeting and promised that he would submit them to the authority’s Board of Directors upon which will be sent to the Ministry of Transport for final decisions.

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