No trickle-down effect of reduction in oil prices: Transporters in twin cities refuse to reduce fares
* Commuters criticise government, transporters for persisting with fares * Say they end up spending 25-35 percent of their income on fares * Transporters say reduction in oil prices not enough * Urge government to reduce prices in line with international marketsBy Atif Khan and Imran AsgharISLAMABAD/RAWALPINDI: Despite decrease in oil prices twice during the last two weeks, transporters are still overcharging passengers on 10 different routes of Rawalpindi, while the Rawalpindi Transport Authority is apparently reluctant to stop the violation.Situation in the capital is not different, where transporters on Sunday refused to reduce inter-city transport fares as they dubbed mere eyewash the claim of the government that reduction in oil prices would benefit the people.The Oil and Gas Regulatory Authority (OGRA) slashed the prices of petrol by Rs 10 on Saturday, while the price of diesel was reduced by Rs 3. From October 30 to November 16, the government reduced the diesel and petrol prices by Rs 7 and Rs 15 respectively. However, passengers, who use public transport, have not yet received any relief, notwithstanding government’s claim that the reduction was aimed at giving relief to the people.According to data available with Daily Times, more than 3,000 public transport vehicles ply on 10 different routes of Rawalpindi and Islamabad and thousands of residents of the twin cities use the facility to reach their destinations by paying low fares. However, discrepancies in transport fares despite cut in fuel prices were forcing passengers to pay high fares.After the announcement of reduction in diesel prices, arguments between transporters and commuters were witnessed throughout the day on Sunday, as commuters insisted for revised fares but transporters refused to reduce them.Lash out: Daily Times on Sunday talked to several passengers, who commute between the capital and Rawalpindi in connection with their jobs. Most of them said that the government had failed to stop public transporters from overcharging and that they were being charged high fares. They urged the Punjab government to take effective measures to provide relief to the people, as petroleum prices had decreased.“Whenever there is an increase of even single rupee in diesel prices, transporters increase fares manifold immediately, which is disproportionate to actual increase in diesel prices. Now when the diesel prices have come down, they are refusing to bring down fares,” Ghulam Ahmed, a passenger said.He said that he spent up to Rs 1,500 on transport fares and that his total salary was around Rs 6,000. Shah Jahan, another passenger, told Daily Times that fares were very high as compared to salaries of the people. He termed high rates of transport major cause of inflation and shrinking in buying power of residents.25-35 percent: “We end up spending Rs 1000-1800 on fares, which is almost 25 to 35 percent of the total earning of majority of the people. If the government sincerely wants to benefit masses, fares must be brought to half,” he demanded.Usman Haider, a student of Government College H-9, said that his parents could not afford his transportation expenses from Rawalpindi to Islamabad. He said that transporters were not providing relief to students even. He said that due to high fees, it had already become hard for the people to get education.“Transporters increased fares soon after the government announced increase in fuel prices but they did not decrease fares when the government cut petroleum prices,” said Iram Shahzadi, who worked as a receptionist for a private organisation in the capital. She said that she earned Rs 6,000 per month and spent over Rs 3,000 per month on transport fares to reach her destination.Perveiz Messih, who worked as a sweeper in a private firm, said that he earned Rs 3,000 per month and spent around Rs 1,500 on fares.Not enough: Muttahida Transport Association (MTA) Rawalpindi President Malik Sultan Awan said that the government was mocking at public transporters by reducing diesel price by Rs 7 during last two weeks. He urged the government to reduce fuel prices according to international markets, saying that transporters were already charging low fares such as Rs 10 from one stop to another.He said that public transporters would reduce fares if the government slashed diesel prices again by Rs 3. He said that in the current situation, transporters were unable to cut fares as they were hardly earning their livelihood.Local transporters of the capital told Daily Times that they could not afford to reduce transport fares, as there was no proportionate decrease by the government in prices of diesel and petrol during the last few months.“It is a mere eyewash. The government increased the price of diesel up to Rs 13 during the last couple of months but when the prices were slashed to half in international market, it just reduced diesel prices by Rs 3. It is just like a joke with the people,” Ghulam Mustafa, a driver, told Daily Times.He demanded that the price of diesel must be lowered in view of the international market rates.Transporters criticised the government for reducing the prices of petrol more than the diesel. “The decision was aimed at benefiting the elite class who use petrol cars, as the petrol price was reduced by Rs 10, whereas the price of diesel, which is used by public transport vehicles, was reduced to Rs 3 only,” Malik Nawab Khan, the president of the Islamabad Transport Welfare Association told Daily Times on Sunday

http://www.dailytimes.com.pk/default.asp?page=2008\11\17\story_17-11-2008_pg11_1

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