Source: Govt rules out transport fare controls despite commuter concerns —
The government has ruled out regulating public transport fares despite concerns that reductions in fuel prices are not translating into lower commuting costs for ordinary Zimbabweans.
Commuters have raised concern over fare increases following recent fuel price adjustments linked to global increases in fuel costs driven by conflict in the Middle East.
Although fuel prices have since been reduced through government interventions, some transport operators have continued charging higher fares, leaving residents complaining of increased pressure on household incomes.
In some areas, commuter omnibuses (kombi) fares have risen from R10 to between US$1 and US$2.
Commuters argue that even when the government subsidises fuel, they are not benefiting because transport operators continue increasing fares. They have called on authorities to ensure that fuel subsidies translate into lower transport costs.
However, the government maintains while it can influence fuel prices, it cannot impose transport fares without introducing price controls, which are not part of its economic policy.
The issue was raised in Parliament after legislators questioned whether government measures to stabilise fuel prices were benefiting low-income earners, who continue to face rising transport costs.
Lynette Karenyi-Kore said that while fuel prices had fallen, commuters were seeing little relief because transport operators continued increasing fares.
“…with the rising prices of commodities, what is there so that those people are cushioned? On the issue of fuel, what is the Ministry doing to protect those who are low earners?” she asked.
Karenyi-Kore said public transport fares had increased significantly despite fuel subsidies, making it difficult for low-income earners to access transport.
“The commuter omnibuses or buses that get to town, fares have risen from fifty cents to one dollar or two dollars. Since subsidising has been done, what has been done for those low-income people? Fuel has been lowered, so I urge the government to lower fares to enable people to get into town so that low-income earners can benefit. I think the government should initiate this,” said the MP.
Responding, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, said Zimbabwe’s market-based economy meant that transport fares were determined by private operators.
“We have a market responsible for that. We have private players who are active in that market providing transport and, really, as Government, what we can do, which is what we are doing, is to signal the direction of prices, but we cannot go down there and impose price controls,” Prof Ncube said.
The finance minister said forcing operators to charge specific fares would amount to introducing price controls, which the government does not support.
“If we are to go the route that the Hon. Member is proposing, it will mean we have to start instituting price controls and that is not palatable. We signal prices generally through the pump price that the Zimbabwe Energy Regulatory Authority (ZERA) publishes. I am sure you see it in various garages, but the impact in terms of fares is an issue for the industry, competition and private players. We cannot dictate that price. We cannot institute price controls,” Prof Ncube said.
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