Ministry of Transportation: Highway Passenger Transport Fares Estimated to Reach Adjustment Threshold in May

Taipei, April 15 (CNA) The Ministry of Transportation (MOT) announced today that due to soaring oil prices driven by the Middle East conflict, highway passenger transport basic fares are expected to reach the adjustment threshold in May. The MOT estimates that NT$120 million will be subsidized for highway passenger transport from May to December, and approximately NT$1.5 billion for taxis if past subsidy amounts are maintained; however, ticket prices will not be adjusted.

The Legislative Yuan's Transportation Committee today invited Minister of Transportation Chen Shih-kai and others to deliver a special report on "Assessment of the Impact of the Middle East Situation and Soaring International Oil Prices on Taiwan's Land, Sea, and Air Transport and Response Strategies," and to answer questions.

According to the business report submitted by the MOT, under the "Highway Bus Route Fare Temporary Adjustment Mechanism," if diesel prices reach the basic fare adjustment threshold and operators apply, the Directorate General of Highways will process the temporary adjustment mechanism according to relevant procedures.

The MOT pointed out that the weighted average price of diesel in March was NT$28.31, which has not yet reached the highway passenger transport fare adjustment threshold, so ticket prices remain unchanged.

Lin Fu-shan, Director-General of the Directorate General of Highways, stated that according to the adjustment mechanism, an adjustment mechanism will be activated once the price exceeds NT$29.6. It is estimated that the average price in April will meet the standard, and if operators apply, it will be announced in May; the estimated subsidy for highway passenger transport from May to December is NT$120 million.

Democratic Progressive Party Legislator Lee Kun-tse inquired whether taxis would also be included in the public transport oil price subsidy. In response, Minister of Transportation Chen Shih-kai said that subsidies for public transport, including taxis, are under discussion. If calculated based on the past subsidy of NT$5 per liter for taxis, approximately NT$190 million would be needed per month, with an estimated expenditure of NT$1.5 billion from May to December.

Kuomintang Legislator Hung Meng-kai then asked whether domestic public transport fares would not be adjusted even if the conflict escalates. Chen Shih-kai replied that in accordance with the Executive Yuan's requirements and instructions, overall domestic public transport fares will not be adjusted. The current plan is that if the total expenditure reaches NT$8.5 billion by the end of next year, the increase in oil prices will be absorbed by CPC Corporation, Taiwan, first, and the MOT will then allocate a budget to reimburse CPC. (Editor: Wu Su-jou) 1150415