KUALA LUMPUR: The Land Public Transport Commission (Spad) yesterday announced fare hikes for taxis, effective immediately, and for express buses from May 15.
The fare hikes are necessary to ensure commercial viability of the industry, said Spad chairman Tan Sri Syed Hamid Albar in a press conference yesterday.
For taxis in the Klang Valley and Johor Baru, the distance fare will be up 38 sen per km or 43.7% to RM1.25 per km, while the time fare will increase 13 sen per minute or 44.83% to 42 sen per minute. The flagfall rate remains at RM3.
For Teksi 1Malaysia (TEKS1M) in the Klang Valley and Johor Baru, the distance fare is up 63 sen per km or 72.41% to RM1.50 per km, while the time fare is up by 21 sen per minute or 72.41% to 50 sen per minute. The flagfall rate is up RM1 or 33% to RM4.
In Penang, the budget taxi distance fare is up 63 sen per km or 72.41% to RM1.50 per km, while the time fare is up 21 sen per minute or 72.41% to 50 sen per minute. The flagfall rate remains the same at RM4.
As for TEKS1M in Penang, the distance and time fares double to RM1.75 per km and 58 sen per minute respectively, from 87 sen per km and 29 sen per minute before. The flagfall rate remains unchanged at RM4.
All revised taxi fares are effective immediately and can be applied to customers once taxi operators recalibrate their meters, said Spad chief executive officer Mohd Nur Ismal Kamal.
Spad estimates it would take taxi drivers and operators about two months to have their meters recalibrated, before charging the new rates.
Spad will also raise express bus fares to 11.4 sen per km, up 22.58% from 9.3 sen per km, efffective May 15.
“The revision which aims to align the fares to actual operating costs, also strikes a fair balance between the welfare of passengers and the drivers as well as the operators,” Syed Hamid said.
He said the taxi fare adjustments were done in consultation with various stakeholders.
“These fare adjustments have factored in the GST (goods and services tax) — although these fares have no GST, the business operating costs do incur GST,” he said.
Mohd Nur also estimated that there would be another revision of railway fares within the year, but stressed that it would depend on KTM Bhd and Syarikat Prasarana Negara Bhd carrying out the fare review.
Mohd Nur also disclosed that SPAD had been informed by the Economic Council that Petroliam Nasional Bhd would increase the pump price of natural gas for vehicle (NGV), which is equivalent to compressed natural gas, to RM1.05 per litre, a 54.41% hike from 68 sen per litre.
The last review of the NGV pump price was in 2005, while taxi and express bus fares were last reviewed in 2009.
Mohd Nur also reminded taxi operators that they would have to charge the old rates until their meters are recalibrated.
This article first appeared in The Edge Financial Daily, on March 20, 2015.