Government says transporters are 'free' to increase transport fares

Business

The Ministry of Works and Transport has said that the increment in public transport fares is “justifiable” and they will therefore not intervene.

The Federation of Uganda Taxi Operators (UTOF) announced earlier last week that they were going to revise their public transport service fares across the country, owning to the increased cost of fuel.

According to UTOF, taxi operators were going to make certain adjustments in price ranges of Shs 500 to shs 5000, depending on the distance.

In a statement from Fred Byamukama,  the Minister of State for Works and Transport, government said it had noted that they are aware of these changes, but shall not intervene because it is "justified."

“The proposed increment in fares has been reviewed to ensure that they are not exploitative. The Ministry is therefore aware of justifiable increments in transport fares basing on the prevailing cost of fuel,” Byamukama said.

According to Byamukama, the agreed adjustments include an increase of Shs 500 for trips within city boundaries, Shs 1000 for trips beyond 35kms and Shs 2000 for trips between 40kms and 100kms.

"There is an increase of Shs 3000 for trips beyond 130kms and an an increase of Shs 5000 for trips beyond 140kms,” Byamukama said.

He said that it is within government's mandate to regulate and monitor public transport but not dictate transport fares which are greatly determined by the forces of demand and supply.

He said that they will continue to monitor the charges to make sure that they are not exploitative.

The statement comes at a time when many Ugandans are complaining about the high cost of living fuelled by a sharp rise in utilities.

Government said that the increasing prices are beyond internal control as most of the factors that led to this predicament are majorly external.

Reader's Comments

LATEST STORIES