DURBAN Transport bus commuters face a 9 per cent fare increase from 1 April 2016. The decision to increase the bus tariffs was approved at a meeting of the Executive Committee on Tuesday.
According to a statement by the municipality, the decision was taken in light of the fact that no fee increases were implemented last year.
The report before Exco said that while the issue of fare increases were sensitive, they were needed to cover the operating costs of the bus service operator to maintain the current service levels under increasing costs. The report recommended the increase be kept to a minimum for the sake of commuters while still allowing the operator to meet operating costs.
The report called for increases to be implemented on 1 March 2016, but Exco took a decision to set the new tariffs for 1 April in order to adequately inform commuters of the price increase.
A contract between the City and bus operator Tansnat, signed in 2009, allows for an annual bus fare increase with a minimum of the escalation for that particular year.
To reach the current fee increase figure, the EThekwini Transport Authority commissioned an independent assessment of the actual cost increase in fuel, labour and other operating costs. Transport Economic Support Services conducted the assessment and recommended the fare increase percentage.
Deputy City Manager of Finance Krish Kumar said the increase was a cost effective tariff. He said the increase of 9 per cent was being implemented over two years as there was no increase last year.
“Inflation last year was around 5 per cent and this year is around 6 per cent, so it is 11 per cent for the past two years, the 9 percent is under inflation and is a reasonable request,” he said.
