Bus fares in Hanoi will continue to rise after more cuts to government subsidies, Ha Huy Quang, Deputy Director of Hanoi’s Transport Department said at a press conference on May 31.
Hanoi (VNA) - Bus fares in Hanoi will continue to rise after more cuts to government subsidies, Ha Huy Quang, Deputy Director of Hanoi’s Transport Department said at a press conference on May 31.
The prices have risen as the State budget can no longer fund the current level of subsidies, according to the official.
The city will balance fuel, insurance and maintenance costs from ticket revenues.
Increasing operating expenditures have also affected fare prices.
The current monthly ticket price on subsidised bus routes is 55,000 VND (2.4 USD) and 100,000 VND (4.5 USD) for college students, industrial zone workers and people above 60.
One-way ticket prices range from 7,000 VND to 9,000 VND.
The new fare prices were not made available at time of print.
State subsidies for many bus routes aim to encourage travel by bus to reduce traffic jams.
Over the last six months, the city budget has spent 823 billion VND (36.5 million USD) on subsidising bus prices. While it spent 973.6 billion US (43 million USD) for the whole 2015 and 1,078 billion US (48 million USD) for 2014.
There are now 92 bus routes in the city, of which 72 routes use subsidised prices.
The department is expected to continue expanding routes in the coming years.
Over the last five months of this year, 24 bus routes have been upgraded.
Quang said the city invested 2.8 billion VND (125,000 USD) to maintain signal boards and lighting systems at bus-stops.
The deputy director said the c🅘ity would develop bus systems in new urban areas, industrial zones, and Hanoi’s outskirts.-VNA
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Passengers take the bus in Hanoi. (Source: VNA)
