25% price hike for Riga transport fares

RIGA — In a move that may force the less well-off to walk through the winter, the ticket price on Riga’s public transport is raised to 50 santims (€0.71) for a single journey. The current price is 40 santims (€0.56) per journey.

The journey could cost public transport commuters up to 70 santims for one journey if they need to buy the ticket from the driver, as often happens.

The 25 percent increase on the ticket price was approved by the Riga City Council’s passenger transport licensing committee on Tuesday as they tried to balance their books for the coming year. The discount ratios for the elderly and students will remain however, the committee said.

The 50 santim fare will be available to passengers using the e-talons (electronic ticket).

The 25 percent price rise was a slight compromise reached after the city’s mayor shot down their initial proposal for a 60 santim (€0.84)  ticket.

Riga’s public transport company Rigas Satiksme stated that the 25 percent increase will still leave the company with a 6.6 million lati (€9.43 million) deficit for the year.

The 2010 national budget, full of tough austerity measures, removes government subsidies on the transport system, passing on the burden to passengers.

The Riga City Council, however, will continue to provide subsidies for passenger transport in the city. The city’s budget though will also be smaller next year, making the company’s revenues fall by around 6 million lats (€8.4 million).

The council confirmed that discounts would remain unchanged for schoolchildren, students, the disabled, pensioners and other discount recipients. But the compromise on the price rise is little consolation for the rest using the transport system. Monthly ticket prices will also rise.

Riga Mayor Nil Ushakov said earlier this the month that the “Rigas Satiksme must also be socially responsible. Public transportation must be available to all residents.”

However, the increase will undoubtedly pinch the pockets of those suffering the most in Latvia’s economic crisis. The minimum wage in Latvia is just 180 lats per month, and a third of Latvians are now earning less than 200 lats a month, meaning that daily commuters will have to spend more than 15 percent of their income to cover their trip to and from work buying tickets in advance.

1 Response for “25% price hike for Riga transport fares”

  1. Sebastian Brooks says:

    It is interesting how can Rigas satiksme use or lost money somewhere. Where? VAT change was one big reason, why they suffered, but what are other reasons? Maybe the management of company should be replaced.
    If you travel by public transport in Riga, it´s easy to notice almost all buses and trams are fullfilled with passengers, overfull in fact. It´s true that soe of them like to be freeriders but it´s tiny little percent of all mass.
    Kicking off thousand workers, introducing that e-ticket, which they told to start saving huge sums after six months of usage. Reducing salaries (except management, I suppose). There was no any dramatic changes in fuel or electricity. After all it is also pointless to compare to prices in London or some other capital cities. Earnings there are also several times higher. Still would like to see some statistics and hear explanations why this increasing AGAIN. It´s almost a tradition already, not only along with inflation.

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