Inflation and Rising Fuel Prices Force 100,000+ People to Shift to Public Transport in Pakistan: Report

As the recent massive hikes in fuel prices have adversely hit the routine life of the middle and lower-middle class, over 100,000 people, who were earlier commuting in their own cars on various intra-city routes have switched to the metro trains, the metrobuses and the feeder bus services in Lahore, Multan and Rawalpindi.  A survey conducted by the government found that 83% of car owners were considering selling their cars because of the high prices and would be using public transport instead. The average price of petrol and diesel hit more than $6 per gallon in some parts of the country, which was extremely high compared to what it was previously.

 

Why Are Fuel Prices Rising?

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According to a recent report by BOC Pakistan Ltd., prices of petroleum products may rise further after an increase in oil prices by international oil companies. This is due to changes made on an international level with regards to crude oil pricing. The price of Brent Crude will increase from $30 per barrel in 2012 to around $95 per barrel, according to Bloomberg reports. These increases will have far-reaching effects that should be taken into account when planning your future energy expenses. For example, if you’re working on a project that will require more fuel over time—such as a piece of industrial equipment that uses diesel for its generator—you might want consider investing now before demand rises even further.

 A Solution - Riding the Bus & Train Is Cheaper!

 

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Rising fuel prices are no joke for countries like Pakistan, which import nearly all of its energy. In July 2012, a barrel of oil cost $113. Since then prices have dropped a bit but are still high – hovering around $100 USD per barrel. Pakistan’s transportation infrastructure is already an obstacle for people trying to get from place to place – now with fuel costs as well on rise taking public transport is even more appealing: it may be slower than driving or cycling but some of Pakistan’s railroads date back over a century and buses remain a popular way for many people move around their city.

 

What is causing the fuel prices to rise?

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Oil prices jumped to $70 a barrel Tuesday for first time since 2014, at least partly on expectation that Iran will comply with demands from President Trump and other leaders of major industrial nations that it curtail its nuclear ambitions. Iran announced Monday that it would not follow through on promises it made last year. However, President Trump insists his pressure campaign is succeeding in forcing Tehran back to nuclear negotiations. The rising oil prices are also due to high demand: Emerging economies like India and China are expected to grow at a robust pace next year, which will boost their demand for oil as they build more refineries. But even if demand stays steady or even declines slightly as U.S.

 What does it mean for you?

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Before you consider commuting by bus or train, do your research. While rail service might be good for commuters, it’s not always great for drivers. To find out if that long-distance bus trip will cost you less time or money than driving yourself across town all day, check out your local transit website to see what sorts of deals are on offer (or whether they even have daily service), check their schedules and prices online before booking a ticket. If it’s too much hassle (or just not feasible) with public transport options near you... consider working from home! Your sanity is worth more than a few bucks spent on gas every week!

 

Is it Good for Pakistan?

Credits: Arab News Pakistan

Many citizens have recently started making use of public transport as a result of increasing fuel prices. While some argue that private transportation has become too expensive for middle-class citizens, others believe that shifting to public transportation is only going to make it harder for Pakistanis to earn their daily breads. It's important not to get carried away with emotion—rushing into a decision can hurt more than help. Both sides are correct: when gas prices rise (for whatever reason), many people will opt for public transportation over private—but whether or not that means they'll be spending less on commuting costs or just using those savings elsewhere is impossible to tell at this time. We need data before we can make conclusions; anything else is pure speculation.

 

  Since the number of such passengers switched to other private or public sector intra-city bus/van services is separate, those using their own transport for travelling out of the cities like Lahore have also switched to inter-city bus services while those already using such transport facilities frequently have reduced their travelling due to massive increase in the fares, Dawn has learnt.

“While observing the passengers ratio, we have found an addition of around 75,000 passengers daily into our intra-city transport systems – Orange Line Metro Train (Ali Town-Dera Gujran), metrobus (Shahdara-Gajjumata) and the Speedo buses plying on feeder routes in Lahore. Similarly, around 20,000 passengers have also switched to the metrobus system in Rawalpindi,” a senior official of the Punjab Masstransit Authority (PMA) says while speaking to Dawn.

An increase of around 7,000 passengers has also been witnessed in Multan’s metrobus system,” he says, showing that people are shifting fast to public transport in Multan too from personal vehicles.

It may be mentioned that the Punjab Masstransit Authority has already reached a consensus to introduce distance-based fares instead of a flat one (subsidised fare of Rs40) for those travelling in the Orange Line Metro Train in Lahore. The authority, during the PTI government’s tenure, had worked out a plan, keeping in view the increasing electricity cost. The new government (of the PML-N) has asked the masstransit authority to finalise the earlier proposal.

“We have sent a summary to the Punjab Cabinet and sought its approval for introducing a distance-based fare instead of the flat Rs40 per passenger. The minimum fare suggested is Rs20 for travelling in the Orange Line Metro Train. But the fares (Rs30 and Rs15) being charged in metro or Speedo buses would remain the same till further orders,” the official explains.

On the other hand, a number of passengers who were earlier using their own transport for commuting have switched to intra-city public transport to reach their offices or places of work. Those using the inter-city public transport frequently have already squeezed their travel due to a big increase in the fares.