CAIRO: Ministry of Transportation will not increase ticket prices of buses and the Heliopolis tram line, head of Cairo’s Public Transport Authority (CPTA) Hisham Atteya told Youm7 Saturday.
“There is no intention to raise the tariffs of public transportation,” stressed Atteya, who added that the ticket price of the Metro is expected to be raised soon.
Red buses will not rise above the basic rate; one EGP per person and the tickets for the 2014 blue buses will remain at their basic value of EGP 2 without being raised, Atteya said.
The memorandum submitted by the Egyptian Company for Metro Management and Operation to the Minister of Transportation Hani Dahi that suggests raising metro fares has resulted in numerous controversies over the consequences of such a decision on the services sectors and the consumer’s subsidized goods.
“Raising ticket prices could create a social crisis, especially with the sharp rise in prices of goods,” a lawyer at the National Center for Research, Mostafa Abdel Rahim told The Cairo Post Friday. He also added that “the Egyptian Company for Metro Management and Operation is achieving significant gains and does not need to raise ticket prices at this critical time.”
Without prior notice and following a promise to cut subsidies, the government raised the prices of three widely used petroleum-derived fuels, octane 80 gas, octane 92 gas, and diesel on July 5, by up to 78 percent.
The new increase in fuel prices ranged from 0.40 EGP ($0.06) to 0.75 EGP ($0.10) per liter.
According to the new pricing structure, the price of 92 octane gasoline, which was sold at 1.85 EGP a liter, was raised to 2.6 EGP and 80 octane gas rose from 0.9 EGP to 1.6 EGP per liter. The price of diesel was raised from 1.1 EGP to 1.8 EGP per liter.
Following the government’s decision to raise the price of fuel by 78 percent, the Central Agency for Public Mobilization and Statistics (CAPMAS) released a July report which listed the effects of the increase on transport fees. The report said the increase in the fees of microbuses is between 0.10 EGP and 0.62 EGP per person. The rise represents 2.1 percent to 7.00 percent depending on routes and regions.
The increase in taxi fees is estimated at 1.4 EGP and represents 5.6 percent, said the report.