Govt, transporters agree to lower fares after CNG prices reduced

After Supreme Court’s intervention, Ogra had brought down CNG prices by over Rs30.

KARACHI: The provincial transport department on Thursday managed to bring transporters on board as it cut transport fares by over 20 per cent following the reduction in CNG prices last week.

The minimum fare for minibuses has been reduced to Rs10 from Rs14, while that for coaches has been brought down to Rs17 from Rs19. Coaches that used to charge Rs20 have been directed to charge Rs18. Fares for inter-city buses and vans have also been cut by 20 and 30 per cent respectively.

The decision came after Sindh Transport Minister Akhtar Hussain Jadoon met representatives of transport associations at the Sindh Secretariat on Thursday. Provincial transport secretary Nazar Mohammad Kalhoro told The Express Tribune that the notification for the new fares will be issued soon, and that they will ensure that the transporters do not overcharge passengers.

The Supreme Court had on October 26 declared the existing mechanism for reviewing CNG prices with oil prices “illegal”. Within hours of that decision, the Oil and Gas Regulatory Authority (Ogra) reduced CNG prices by Rs30.38 in Sindh and Punjab, bringing it down to Rs54.16 per kilogramme. Advisor to the prime minister on petroleum affairs, Dr Asim Hussain, declared on October 27 that the government will shut down any CNG station that was not charging the official rate.

“We reduced fares for the benefit of the people of Sindh, even though public transportation costs less in Sindh when compared to other provinces,” said Kalhoro.

Karachi Transport Ittehad (KTI) chairperson Irshad Bukhari said that they had accepted the reduced fares to earn “goodwill” of the people.

Nearly 13,000 buses, minibuses and coaches operate in the city, according to KTI general secretary Mehmood Afridi. Around 8,000 vehicles had been converted from diesel to CNG by 2010, while the remaining are still running on diesel.

MQM welcomes decision

The Muttahida Qaumi Movement’s coordination committee welcomed the provincial government’s decision to bring down fares for public transport, and asked bus and coach owners to follow the government’s directives.

Published in The Express Tribune, November 2^nd, 2012.