Friday, 23 December 2005
UB Post Reports:
With the recent increase in petrol prices, public transportation companies are again asking for government assistance to cover their heavy losses. The price for petrol raised Tg 30-40 per liter on December 15 and because of the frozen ticket price enforced by the government ten years ago public transportation companies are showing signs they will not be able to recover.
Representatives from the companies explained that at the current fare price, established at Tg 200 in 1992 when the price for petroleum was Tg 270 per liter, companies have no way to pay the salaries of their workers. Since 1992 petroleum prices have raised so dramatically that many companies today face extinction due to debt worth more than Tg 140 million in social insurance premiums.
G. Baldansharav, Vice chairman of the Capital City’s Public Transportation Regulation Board said that the bus fare might be raised in January because there seems to be no other way to fix the problem. If the government won’t raise the ticket price they will be required to pay a high amount in compensation to each of the companies.
The last raise in petroleum price forced 3 bus companies to limit their transportation service to just 4 days of the week. Though now running again on schedule many transportation companies are taking petroleum on loan until a decision is made by the government.
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