Taxi fares likely to increase

[rxpharm]

Looks like airlines fuel surcharges aren't the only thing coming down the pipe:

As reported in The Nation June 12, 2008

Here is the link: Bangkok Taxi Fares May Increase

Taxi fares may rise



Bangkokians will have to pay 11 per cent higher on average as taxi fares, if Deputy Transport Minister Songsak Thongsri approves the fare increase Thursday.

Acting Land Transport Department director-general Chairat Sanguansue said the minister will weigh two options: First, the first 2km fare is maintained at Bt35 but the rates for subsequent distance is raised 50 satang to Bt1 per km. Second, the first 2km fare is Bt40, but the subsequent rate is raised at only 50 satang per km.

Songsak said he would discuss with Transport Minister Santi Prompat on the fare hikes, before issuing the ministerial regulations to validate the increase.

The Nation

It is only a matter of time before the rates for p4p (both lbs and ggs) will increase. Inflation is a problem in LOS, so expenses for everyone are going up. Just think about your own country - things cost more too.

[Road Runner]

I've been wondering about the fares for years.

Personally I thinK the 40 Baht first fare option is fairer to the taxis as most of the trips will be 2-3 km.

RR.

[kahuna]

They will still be a bargin by western standards...

[Road Runner]

Can't remember what hire rate (flag fall) is where I live but I think it's £4.80 = 290 Baht!    

For that you get about 0.5 miles = 0.8 km.

I'm still unsure how they will manage to make money at 40 Baht for the hire.

RR.

[stogie bear]

Fuck that. I'm getting the bus from now on.

[rxpharm]

While the bus is cheaper, approval for bus fare increases is coming down the pipe as well:

as reported in The Nation, June 12, 2008

Supreme Administrative Court allows bus fares to rise


The Supreme Administrative Court on Wednesday cancelled the injunction issued by the Central Administrative Court against the increase of bus fares in Bangkok.

The Supreme Court's ruling will allow the private bus operators in Bangkok to increase their fares, which is expected to start on Thursday or Friday.

The Nation

Not sure how much the rates will increase, but likely in the 10-15% range.

Also just take a look at the inflation projections for Thailand -

The inflation rate jumped to a 10-year high of 7.6 per cent in May as soaring fuel prices pushed up costs in food and other sectors. The finance minister announced in late April that he would raise the inflation target for 2008 to 5-5.5 per cent from 3-3.5 per cent due to soaring oil prices.


UBS has raised its inflation projection for the year from 5.5 per cent previously to 7.4 per cent.

From The Nation June 13/08 - as part of the article UBS says Thai Bourse still attractive in spite of flight of foreign investors. Link to article: UBS Nation Article

As mentioned costs for almost everything is going up in LOS and worldwide. Only a matter of time before the p4p rates will go up, if inflation continues on.

Look at the changes in prices for cereals - as reported by the Asian Development Bank:

The food crisis is hitting the poor hard, he said. Since mid-2007, cereal prices have skyrocketed - by 114 per cent for wheat, 105 per cent for rice and 41 per cent for corn.

Link to The Nation Article: Avoid Distorting the Food Market - ADB Economist

[stogie bear]

Oh well.. I'll get on my bicycle, then!