Inter-provincial bus firms 'forced' to axe routes

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buksida
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Inter-provincial bus firms 'forced' to axe routes

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Operators of inter-provincial buses will reduce or halt services along certain routes due to the increase in the price of diesel fuel, said Pichet Jiamburaset, president of the Thai Bus Business Association.

He said the private operators cannot cope with rising costs linked to the rising fuel price, which has risen from 27 baht per litre in 2017, to 34 baht.

If the services were to continue, they would shoulder about 1,400 baht for fuel among other rising costs, he said.

Mr Pichet said their call for government assistance has not yet been answered, so the operators have decided to cut or stop services along certain routes.

The measure is their only option, under circumstances that may force some to completely shut down operations, he said.

Meanwhile, Kla Party leader Korn Chatikavanij has come up with a three-point proposal to help people affected by soaring fuel prices, including modifying the kingdom's refining margin ceiling.

Drivers pay the refinery margin when they fill up at petrol stations and it is considered a cost added to the price of refined crude oil, he said.

Mr Korn said the refining margin has increased almost 10 times per litre, standing at 8.5 baht on Friday, compared with 0.87 baht on June 10 last year and 0.88 baht on June 10 in 2020.

The former finance minister said a higher margin serves as a financial burden on consumers and the Oil Fuel Fund, which subsidises oil prices and is 86 billion baht in the red.

He said the government should consider fairer pricing structures for firms under the state-owned PTT Plc.

https://www.bangkokpost.com/thailand/ge ... axe-routes
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Re: Inter-provincial bus firms 'forced' to axe routes

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buksida wrote: Mon Jun 13, 2022 12:21 pm He said the private operators cannot cope with rising costs linked to the rising fuel price, which has risen from 27 baht per litre in 2017, to 34 baht.
It seems a lot of fuss about very little to me. It was 32฿/litre when I bought my car in 2012. 2฿/litre in 10 years seems reasonable. They never tell you what they were charging 10 years ago compared to now.
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Private buses to slash services as diesel cost bites

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This is going to change every big bus and small bus schedule in the country, including the airport to everywhere.

https://www.bangkokpost.com/thailand/ge ... cost-bites

Twenty-seven private bus companies operating provincial and interprovincial routes plan to slash services from July 1 because of the soaring cost of diesel.

The state-owned Transport Company will continue to operate services as normal.

The Thai Private Bus Operators Association announced on Monday that 27 of its members had decided to reduce the freqency of their services by 80% from July 1. They could no longer bear the cost of providing full services.

Association chairman Pichet Jiemburaseth said the owners were running at a loss, about 1,600 baht on each trip on average. He said the present fare structure was a problem. It had been in place since 2019, when the diesel price was only 27.79 baht per litre.

The current diesel retail price is 34.94 baht in Bangkok, according to PTT Oil and Retail Plc.

Members of the association have a total of 20,000 buses. The anouncement did not say how many buses were operated by the 27 companies.

Bus companies reducing service frequency from July 1 include those operating on routes from Bangkok to other provinces, between provinces and inside provinces. One of them is Nakhonchai Air, which will reduce bus frequency on 29 routes.

Transport Co managing director Sanyalak Panwattanalikhit said on Tuesday the company had no plans to reduce services on domestic or international routes.

The company was looking into ways to help private operators running under Transport Co concessions, he said.
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Re: Inter-provincial bus firms 'forced' to axe routes

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Buses to cut back services over costs
Almost 50 companies running interprovincial buses will reduce their operations on routes nationwide starting July 1, due to high fuel costs, according to the Thai Bus Business Association.

The association first reported on June 20 that 43 interprovincial bus companies would curtail their services from July 1. However, on Tuesday the association said that there are now 47 companies cutting back services on 227 routes due to rising fuel prices and operational costs.

Sanyalux Panwattanalikit, managing director of the state-owned Transport Co, said that the company acknowledges the financial hardship that companies are struggling with and is trying to find solutions to alleviate the situation.

As part of that, Mr Sanyalux said the Central Land Transport Control Board will need to consider how any hike in bus fares, as a way to manage cost increases, would impact customers and bus operators.

Pichet Jiamburaset, president of the Thai Bus Business Association, said the transport operators suffered a heavy slump in passengers over the past two years due to the Covid-19 pandemic.

Now, they are facing a fuel price crisis while no state subsidy for fuel is forthcoming, Mr Pichet said.

https://www.bangkokpost.com/thailand/ge ... over-costs
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Re: Inter-provincial bus firms 'forced' to axe routes

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Yes, it seems to be a crazy situation - I think I read before the Government will not let them raise fares. They are taking the only option open to them.

From a personal, selfish point of view, for every bus this takes out of the outside lane of the motorway, driving in Thailand will become just a tad safer.

From a cynical point of view, I guess this will see more seats taken on the remaining state run buses, making them profitable.
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