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Bus operators to increase fares
Bus service operators are preparing to increase fare prices after another increase in the cost of oil this week.
“We are currently discussing suitable prices and then we will make a proposal to the government through the Ministry of Public Works and Transport,” Director of Chitprasong Nyotninhom Company Ms. Chitprasong Louangdethmixay told Vientiane Times yesterday.
The company's decision comes in the wake of the continually rising cost of oil this year, which has caused the price of goods and services to increase in Laos.
A VIP bus fare from Vientiane to Pakxe district, Champassak province, currently costs 170,000 kip, while Vientiane to Savannakhet or Luang Prabang provinces costs 130,000 kip for a VIP or 110,000 kip for a regular ticket, she said.
Transport fees should increase in line with the rise in oil prices, Ms. Chitprasong said.
She said a similar situation occurred in 2008, when the company raised the price of its tickets from Vientiane to Pakxe to about 190,000 kip, only to lower it again to about 150,000 kip later that same year.
The p rice of diesel in Vientiane this month increased from 9,670 kip per litre to 10,060 kip and regular petrol from 10,640 kip to 11,000 kip, and it was a similar case in the provinces.
“We don't yet know by what percentage the price of tickets will increase but we are determined to remain cost-friendly for our customers,” she said.
The higher bus fares may affect people, including students, who travel regularly. However, they are not designed to boost profits but rather to ensure services can continue.
The higher cost of oil has also caused increases in the international fares offered by Lao Airlines, as well as the price of goods such as construction equipment.
Earlier this year, the Ministry of Public Works and Transport approved an increase of between 10 and 15 percent to public bus fares nationwide in response to the rising price of fuel. Bus operators say they would ask the ministry to increase fares again if petrol in Laos hits 11,000 kip per litre.
High transport costs have been blamed for the rise in the cost of beef in central provinces to 45,000 kip per kg, but in the northern and southern provinces the price has remained stable at 35,000-40,000 kip per kg.
On Monday, the price of oil in world markets rose to nearly US$113 per barrel, after costing only US$104 recently. Fuel consumption in Laos increases by an average of 7 to 10 percent each year and is expected to total more than 750 million litres this year.
vientiane times
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