NO BUS FARE HIKE FOR THE TIME BEING

The planned fare hike for intercity bus transportation, originally set to start this week, was suspended at the last minute by the government's recent approval of a fuel subsidy program. But some operators complained that the subsidies seem too meagre and therefore are unlikely to prevent an eventual fare hike.

As the international price for oil continues to climb, bus companies are facing increasing financial pressure and originally decided to raise ticket prices.

However, the government recently approved a subsidy plan to compensate the rising petrol costs, and bus companies had to issue a retraction of their earlier announcement.

The first wave of the subsidy plan will benefit industries hit hardest by the high oil prices, including the mass transportation industry, taxi drivers, passenger ferries, Rehabuses, as well as the agricultural and fishing industries.

Beginning May 1, the subsidy program will run for a three-month trial period.

With the 95 unleaded petrol costing 33.1 NT per liter as a standard, oil prices that have increased 3NT will be subsidized by the government with 36.1 NT as the cap.

Bus companies say that the subsidy program is better than nothing and if they continue to struggle with the rising costs of oil, they will have to resort to raising ticket prices.

In the meantime, the public transportation industry will remain with their original prices.

But will the government extend the subsidy program to include regular consumers with the government subsidizing 2/3 of the costs and consumers handling the remaining 1/3?

The Ministry of Economic Affairs says it will have to evaluate the change in oil prices in the future to make further decisions.

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