Bus operators start charging new fares prematurely

What you need to know:

Some bus operators have begun charging higher fares that are due to officially come into effect on May 14.
The Land Transport Regulatory Authority said in response that all operators found charging new fares before the official date would be dealt with accordingly

Dar es Salaam. Some passenger bus operators have already started charging travellers new fares, 14 days before the actual date for the adjusted rates become effective, The Citizen has learnt.
Last Saturday, the Land Transport Regulatory Authority (Latra) announced new fares for commuter buses within the city and long-distance buses.
The new rates, which were announced by Latra director general Gilliard Ngewe, were expected to become operational after a period of 14 days, suggesting that they could become effective on May 14. In its announcement, Latra gave the operators 14 days to create public awareness regarding the new rates before they become effective.
However, a spot check at the ultra-modern Magufuli Bus Terminal in Dar es Salaam shows that a number of passengers were subjected to the new rates from yesterday even as others claim that they have been charging the same rates for several days.
A passenger, who was travelling from Dar es Salaam to Dodoma on a semi luxury bus paid Sh25,000 yesterday instead of the usual Sh24,000.
“I arrived half an hour ago here, trying to buy a ticket so that I can travel to Dodoma, but many people selling tickets are telling me about new fares. I have decided to buy it at their preferred rate of Sh25,000. As you can see, I am in a hurry. I have a very sick relative to go and look after in Dodoma,” said Ms Judith Peter.

Difficult task
Ticket sellers at the bus terminal told The Citizen yesterday that it was a difficult task for them to wait until May 14 while fuel prices were biting hard on their operations.
“That is why some bus operators have already started charging the new rates,” said a source on condition of anonymity, naming some of the buses that have adjusted their rates, including those plying the Dar es Salaam-Arusha route.
Latra’s senior corporate communications officer Salum Pazzy said the authority has deployed some officers in major bus terminals across the country in an effort to inspect operators who have adjusted their rates prior to the announced date.
“Those who would be found to have increased the bus rates before the stipulated time (May 14), would be dealt with in line with the law,” he said.

Penalties
Section 19 of the Latra Act, 2019 empowers Latra with the powers of setting and carrying out regular review of rates and charges and that in the exercise of that mandate, it (Latra) shall consider several issues, including the costs of making, producing and supplying the goods or services; the consumer and investor interest as well as the desire to promote competitive rates and attract the market among others.
Section 42 of the same law states that a person who contravenes or fails to comply with the provisions of the Act, commits an offence and is liable on conviction to a fine not exceeding Sh3 million or imprisonment for a term not exceeding two years or both. Mr Pazzy said they have introduced a free toll number that allows any passenger to call Latra and report any bus operator who was trying to increase bus fares.
“I urge all people and passengers travelling to ensure they have Latra’s toll number 08001119 so that it could be easy to call and report the matter to us,” he said.

Suspend Sh500 levy
Meanwhile, the opposition ACT-Wazalendo said yesterday that the government could do away with the announced rates, providing that they temporarily suspend a Sh500 levy on every litre of petrol, diesel and kerosene as a way of bringing fuel prices down, hence removing the necessity for operators to raise fares.
The party’s spokesperson for Information, Technology and Transport, Mr Ally Saleh, said ACT-Wazalendo was aware that by suspending the levy, the government’s budget would have a shortfall of Sh220 billion per month.
“We thus recommend a temporary suspension of disbursement of funds for the purchase of airplanes while the government should also take austerity measures in its spending to bridge the shortfall,” he said.
The government, ACT-Wazalendo says, should also withdraw part of its reserves at the International Monetary Fund (IMF) and direct the money in development projects that will have been affected by the suspension of fuel levy.
He said the party believes the rise in fares will see the cost of living rising as it will fuel the rise in inflation rate.