July 1, 2008

Bus and Cab Fare Hikes Come into Effect

Long-haul bus ticket prices and cab fares increase on Tuesday. The price hikes are a direct result of the sharp rise in fuel costs.

Taxi fares increase an average 7.4 percent, while bus tickets are now six percent more expensive.

Fuel prices have doubled in the past year, putting a serious dent into the road travel business. On Monday the cost of crude oil hit a new record high, reaching more than 143 USD a barrel.

The cab fare hike will cost the state, local governments, and the Social Insurance Institution around 20 million euros more a year. However, some local taxi associations say the increase is not enough to offset both the skyrocketing fuel costs and the increases in labour costs.

They point out that bus companies raised its prices six months ago, while the Finnish Taxi Owners Federation is only allowed to adjust its price once a year.

Long-haul bus ticket prices will increase a maximum of six percent, with shorter trips increasing less.

http://www.yle.fi/news/left/id95070.html