Public transport fare hike postponed

The 12% public transport fare hike, which was set to take effect on July 1, has been postponed until August 1 after a meeting of the Ministerial Committee of the Ministry of Transport and the Ministry of Finance. Until then, the transport and finance ministries will seek agreement on how to find a budget to support and avoid fare hikes. But if it is applied, the single bus fare will cost 6 shekels instead of 5.5 shekels, but the increase will also apply at the same price to long trips on buses and trains.

Government officials believe that it is not right to support the fare increase that stems from the increase in the index of public transportation inputs, which includes fuel, drivers’ salaries and other expenses, because the subsidy will cost the taxpayer 300 million shekels. Officials argue that it is not the price of a bus ticket that convinces the public to use the buses, but rather, the availability, frequency, speed and reliability, and money is better spent improving these issues. Moreover, public transportation fares in Israel are relatively low by OECD standards and are already more subsidized.

However, any price increase will affect the public and government ministers are pressing for a solution as part of their campaign against the rising cost of living.

Published by Globes, Israel business news – en.globes.co.il – on June 26, 2023.

© Copyright Globes Publisher Itonut (1983) Ltd., 2023.