THE Bangladesh Railway鈥檚 decision to increase fares on long routes is worrisome as people are already burdened with unprecedented inflation. The authorities have decided to increase the fares by cancelling the distance-based rebate. The decision will come into effect on May 4. Passengers now get a 20鈥�30 per cent rebate on fares for travel for more than 100 kilometres. Passengers had received two rebates 鈥� distance-based and section-based 鈥� since 1992 and the authorities cancelled the section-based rebate in 2012, which increased the fares substantially. With the cancellation of the distance-based rebate, the fares will increase by 10鈥�25 per cent, depending on the distance. The railways minister on March 18 said that the ministry had no intention to increase fares. Officials say that the ministry has not increased fares but has only cancelled the distance-based rebate. This appears a trick as the end result is a substantial increase in fares. As trains are usually used by low- and fixed-income people, already in a tight spot because of runaway inflation, the increase in fares stands in contrast to the government鈥檚 pledge to fight inflation.
The decision, like a number of earlier counterproductive measures such as increase in fuel oil prices and transport fares, is likely to intensify the inflationary pressure. Inflation, especially food inflation, has remained high for two years, with food inflation often crossing the 10 per cent danger mark. The authorities explain their decision by saying that the cancellation of the rebate would result in an increase in its revenue of as much as Tk 300 crore annually. Such an annual revenue can, as passengers鈥� association say, be earned by the railways by enhancing the capacity of freight wagons, reported to have decreased from around 14,000 to less than 3,000 in two decades. An effective freight train system, experts say, could have come handy to people and businesses that are forced to ferry their goods by road, heavily impacting the road infrastructure, adding to traffic congestion and goods prices, and could also help reduce, as is evident in the case of India, passenger fare by earning revenue for the Bangladesh Railway. What is also unacceptable is that the railway authorities have failed to improve services. The authorities increased passenger fares in February 2016 by 7.23 per cent on an average and in October 2012 by 50鈥�115 per cent promising improved services but have largely failed to do so. The authorities have also failed to improve and expand freight and container transport services.
The railway authorities must, therefore, step back on increasing passenger fares. The authorities must also prioritise the improvement of both freight and passenger train services. The authorities must address issues such as derailment and accidents, insufficient trains, old infrastructure and disruptions in schedules.
