Fares for land public transport such as buses and taxis are not dictated by world oil prices even though the latter had been declining of late.
Land Public Transport Commission (SPAD) chairman Tan Sri Syed Hamid Albar said petrol and diesel contributed merely 10 percent towards the operating costs of companies providing public transport services.
"There are other influencing elements, such as the goods and services tax (GST) imposed on vehicle spare parts.
"Aside from that, the companies have to bear with higher insurance premiums and fluctuating foreign exchange rates," he told a press conference here today.
He said this at the opening of a Premier Express Services office and signing of a memorandum of understanding (MoU) between Syarikat Tiara Pesona Sdn Bhd and Syarikat SCANIA Sdn Bhd, and between MAN Truck & Bus Malaysia and RTG Intech Sdn Bhd.
Tiara Pesona was represented by its CEO Laili Ismail and SCANIA, by its general manager Idris Puteh, while MAN was represented by its managing director Hartmut Mueller and RTG Intech, by its managing director Roslan Ramin.
According to the MoU, SCANIA would supply 50 buses while MAN, four buses to Tiara Pesona by the end of this year.
Syed Hamid said although consumers had expressed grouses over the increase in land transport fares, they also admitted that the services they were getting were much better now.
Bernama
Thu Mar 10 2016
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Petrol and diesel contribute only 10 percent towards the operating costs of companies providing public transport services.
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