Trains May Follow Bus, Launch Fare Hikes

Global supply chains have been disrupted due to conflicts in the Middle East, leading to a rise in fuel prices in the domestic market. This has triggered a negative impact on public transports. Following the increase in diesel prices, the government adjusted bus fares this Thursday. Official fare hikes for other diesel-powered passenger and goods vehicles, such as trucks and launches, are now a matter of time. However, increased fares are already being collected on various routes since the day after fuel prices rose. Following the trend set by buses, a proposal to increase train fares is now on the horizon.

Afzal Hossain, Director General (DG) of Bangladesh Railway, believes that train fares should be increased by 40% to a maximum of 50%. With fuel costs rising significantly, he warned that failure to adjust fares would result in a heavy debt burden on top of existing losses. Speaking to Agamir Somoy, the DG stated that it is becoming impossible to bear the brunt of these losses without a fare adjustment in the current situation.

According to railway officials, trains require at least 100,000 liters of diesel per day. With the price of diesel increasing by Tk15 per liter, daily expenditure on fuel alone has risen by Tk1.5 million. Since trains operate year-round (except on Eid day), the annual fuel expenditure is expected to increase by 544.5 million taka (Tk 54.45 crore)

Discussing the overall situation, DG Afzal said, "Whether the fare will increase or not is a decision to be made by the government. However, if it does not, the railway's debt burden will only grow heavier."

Providing an example, the top railway official noted, "Even if we exclude AC classes—since those passengers are fewer—the majority of passengers travel in Shovon class. On the Dhaka-Chattogram route, train fares are currently half of bus fares. A 400 TK fare needs to become 600 TK."

Regarding the railway's financial losses, the Director General mentioned that previously, the railway had Tk 100 crore in outstanding fuel bills, but that figure has now reached Tk 300 crore Settling this amount is currently impossible, leading the railway to look toward additional allocations in the next fiscal year's budget.

Meanwhile, the Bangladesh Petroleum Corporation (BPC) has reduced the fuel supply to the railway. Compared to previous allotments, the supply is now being cut by 10% in each installment. To meet daily demand, the railway is dipping into its reserves; if this continues for another 15 days, those reserves will be exhausted.

Furthermore, the railway’s outstanding fuel bills have surged from Tk 100 crore TK to TK 300 crore. It is currently impossible for the railway to settle this debt, meaning it will have to be paid from the next fiscal year's budget. Consequently, the railway plans to seek additional allocations in the upcoming budget.
Unrest Over Bus and Launch Fares

Since the hike in fuel prices, bus and launch owners have remained steadfast in their demand for a fare increase. Although the government has not yet made an official announcement regarding these specific hikes, the impact is already being felt on the ground.

A chaotic scene was observed at various bus terminals and launch pontoon (ghats) in the capital. Transport workers are collecting extra money, ignoring government-regulated fares. This has led to frequent heated arguments and even physical altercations between passengers and transport staff over the demand for higher fares.

Passengers complain that transport owners are "picking their pockets" before any official declaration has been made. Conversely, transport workers argue that it is impossible to operate vehicles at the old rates while buying fuel at higher prices. Transport owner and worker associations are now pressuring the government to issue a formal notification for the fare hike immediately.

It remains to be seen how much the government will ultimately adjust rail, bus, and launch fares while considering the cost of living for the general public.