Wednesday June 3, 2009
Taxi and bus fares up soon
By TEH ENG HOCK
Taxi and bus fares to go up
KUALA LUMPUR: Taxi and bus passengers will be forking out between 30% and 50% more for their trips when fares are raised soon – and it could be as early as next month.
With the increase, a 10km taxi ride will cost more than RM10 instead of the current RM8, and even more should they be caught in a traffic jam.
Minister in the Prime Minister’s Department Datuk Seri Mohamed Nazri Abdul Aziz told reporters after hosting a dialogue with taxi operators and associations in the Klang Valley that a memorandum on the fare increase had been circulated to all ministries for their feedback.
The increase would encompass fares for taxis and stage, express and schoolbuses, he said.
Nazri said the starting fare for taxis would increase from RM2 to RM3 for the first kilometre and from 10 sen to 13 sen for every subsequent 150m.
He said that when a taxi was stationary, such as during a traffic jam, the proposed rate was 13 sen for every 27 seconds, more than a 100% increase from the 10 sen for every 45 seconds.
Although Nazri declined to reveal the proposed fare increase for buses, sources indicated that the rise would be around 30%.
It is also understood that despite Nazri saying that he would table the proposal to the Cabinet only after receiving feedback from the ministries, the matter could be decided this month.
At the dialogue, taxi operators and associations also told Nazri that they had problems buying insurance for their vehicles as the firms did not want to sell them policies.
“I have spoken to the minister in charge of the Economic Planning Unit Tan Sri Nor Mohamed Yakcop and proposed that instead of a full liability plan, the Insurance Act should be amended to allow for limited liability.
“Currently, insurance companies collect RM400mil a year in premiums, but the claims come up to about RM2bil. Maybe we can limit them to RM5,000 or RM10,000,” he said.
Taxi and bus fares up soon
By TEH ENG HOCK
Taxi and bus fares to go up
KUALA LUMPUR: Taxi and bus passengers will be forking out between 30% and 50% more for their trips when fares are raised soon – and it could be as early as next month.
With the increase, a 10km taxi ride will cost more than RM10 instead of the current RM8, and even more should they be caught in a traffic jam.
Minister in the Prime Minister’s Department Datuk Seri Mohamed Nazri Abdul Aziz told reporters after hosting a dialogue with taxi operators and associations in the Klang Valley that a memorandum on the fare increase had been circulated to all ministries for their feedback.
The increase would encompass fares for taxis and stage, express and schoolbuses, he said.
Nazri said the starting fare for taxis would increase from RM2 to RM3 for the first kilometre and from 10 sen to 13 sen for every subsequent 150m.
He said that when a taxi was stationary, such as during a traffic jam, the proposed rate was 13 sen for every 27 seconds, more than a 100% increase from the 10 sen for every 45 seconds.
Although Nazri declined to reveal the proposed fare increase for buses, sources indicated that the rise would be around 30%.
It is also understood that despite Nazri saying that he would table the proposal to the Cabinet only after receiving feedback from the ministries, the matter could be decided this month.
At the dialogue, taxi operators and associations also told Nazri that they had problems buying insurance for their vehicles as the firms did not want to sell them policies.
“I have spoken to the minister in charge of the Economic Planning Unit Tan Sri Nor Mohamed Yakcop and proposed that instead of a full liability plan, the Insurance Act should be amended to allow for limited liability.
“Currently, insurance companies collect RM400mil a year in premiums, but the claims come up to about RM2bil. Maybe we can limit them to RM5,000 or RM10,000,” he said.
