Bus operators await decision on new fares

Senior Journalist with The Citizen

Mwananchi Communications Limitted

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During a public hearing last week, bus owners proposed that the fare for commuters be adjusted by Sh500 per route, suggesting that where commuters used to pay Sh400, they should now pay Sh900.

Dar es Salaam. Eyes of bus owners will be gazing at Land Transport Regulatory Authority (Latra) for a word on their fare hike application.
Bus owners have applied for an upward adjustment in fares in response to a rise in their operating costs, fuelled mainly by increasing fuel prices.
During a public hearing last week, bus owners proposed that the fare for commuters be adjusted by Sh500 per route, suggesting that where commuters used to pay Sh400, they should now pay Sh900.
However, the Latra Consumer Consultative Council (Latra-CCC) vehemently opposed the proposed rates on grounds that commuter operators are currently allowed to carry more passengers than the number of seats on their vehicles.
“Besides, the fact that the routes are short means that one can board a commuter bus and drop at the next stand thereby giving the operators a chance to fill the same seat with another passenger and thus earning twice or more on the same trip,” said the Latra CCC chief executive officer, Mr Leo Ngowi.
He said the proposed fares were higher than the recent rise in fuel process, proposing that commuter bus operators should look for ways of minimising the loss of revenues, including adoption of e-ticketing system. But spokesperson for the Tanzania Bus Owners Association (Taboa), Mr Mustapha Mwalongo warned passengers to be prepared for increased fares due to the rising global oil prices.
“Taboa has followed the procedure for submitting applications and details of the revenue and expenditure of bus companies annually to Latra for the new fare process based on the current purchase costs, prices and actual value of buses,” said Mr Mwalongo.
But, yesterday Taboa pointed out that their Tanzanians hope was pinned on Latra’s shoulders today, which was set as the deadline for proposals on how fares should be increased to battle the rise in the oil prices.
Speaking to The Citizen by telephone yesterday, Taboa general secretary Mr Priscus John said they had no plans to start a strike but asked Latra to respond as soon as possible to save the business as some operators have already begun shutting down their businesses.
“The situation is worse, there are owners who are in debt to oil companies, shops and there is a possibility of a crisis between bus owners and banks due to debts,” he said.
He explained that they had already submitted their views to the authority and that the current situation would depend on the time when the latter would have provided a framework that would be in line with the current situation in terms of the transportation business.
“The situation will depend very much on what would Latra come up with as the regulatory authority, it may be well received or it may still need to be improved,” he noted.
For his part, the chairperson for the Union of Commuter busses Owners in Dar es Salaam (UWADAR) said they had not yet started any strike until Latra come up with its statement after receiving service providers’ comments.
“We are waiting to hear if Latra will understand us because the situation is very bad. So tomorrow (today) is the day we agreed and its the one that will determine the way forward,” he said.