TRC collects public views on proposed fare increment

THE Tanzania Railway Corporation (TRC) is collecting stakeholders’ views in Mwanza Region, on its proposed 15 percent train fare increment.

TRC Senior Commercial Officer, Mr Idd Mzungu, said over during the stakeholders’ meeting held over the weekend that the proposal to increase the fares   was due to an increase in operational costs, for over 30 percent.

He said that, in the 2021/22 financial year, between July and March fuel consumption was 5,523,992 litres which cost 12.5 bn/-.

The fuel consumption for remaining period (April to June), which has been affected by new fuel prices, is 1,841,330.67 litres   which cost 4.9bn/-, making projected annual fuel consumption to 7,365,323 litres worth 18.5 bn/-.

He said  taking into account  the  high cost of living  which has been contributed by a number of factors  TRC  has no option rather that adjusting  fares to cope with  situation.

Mr Mzungu, further explained that April 6 this year  fuel prices  sold at  2,692/- per litre, from 2,405/-  an increment  of 287/-, equivalentto12 percent.

He said on  May 4 this year the prices shot up 3,258/- per litre, from 2,692/-, an increase of 566/-, equivalent to 21 percent, while on  June 1  increased  to 3,452/- per litre equivalent to an increase of 194/- or 6 per cent.

“On the same month of June, after public outcry the government provided a subsidy of 321/- per litre to cushion fuel prices.

The actual fuel price increases from the original price of March to June 2022 is equivalent to 30 percent to be recovered from our earnings and reduce cash flow gap,” he said.

Director General for the Land Transport Regulatory Authority (LATRA), Mr HabubuSuluo, explained that 15 percent increase will be counted from the point a person or cargo gets on board.

He added, despite opinions gathering, the authority will also investigate other possible fare rise causes, including income loss loophole in ticketing systems.

LATRA is also going to observe how much the new rates are affordable to ordinary people, but at the same time make sure that TRC operates in line with what it invests.

“Opinions gathering in Mwanza will end in the first week of next month,” he said.

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