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Published on April 18, 2008

Watcharapong Thongrung

The Nation

Inter-provincial bus operator Transport Co has suffered losses amounting to Bt140 million since last October, due to the rising cost of oil.

Managing director Wutthichart Kalayanamitr yesterday said the losses were continuing at a rate of about Bt20 million a month.

"Therefore, we don't expect to show a profit this year, whereas we recorded a profit of Bt300 million last year," he said, predicting that oil would rise this year from 30 per cent of the company's operating costs to 55 per cent.

Transport Co is unable to increase its fares, because the government wants to help low-income earners cope with the higher cost of living. Therefore, it must seek new sources of income to cover the losses.

Wutthichart said one measure to ease the effects of rising oil prices would be the introduction of buses running on natural gas for vehicles (NGV). The company will begin using 100 NGV-powered buses this year.

Thai Bus Business Association president Pichet Jiamburaset said the association had asked the Land Transport Department to review the cost of operating buses and pursue measures to help bus companies.

The association has proposed that bus operators be allowed to increase fares 3 satang per kilometre for non air-conditioned buses, 4 satang per kilometre for air-conditioned buses without toilets and 5 satang per kilometre for air-conditioned buses with toilets.

The association will meet next week to discuss the effects of the higher oil prices.

Wutthichart said that since 2006, 4,000 bus operators out of the association's membership of 20,000, or 20 per cent, had ceased operating because of oil-price hikes.

Land Transport Department acting director-general Chairat Sanguansue said the Central Land Transport Control Committee would discuss the association's proposals next Tuesday. The committee will also ask the Energy Ministry to provide cheaper oil to help the bus operators.

"The suggestions will be forwarded to the Transport Ministry before Cabinet approval is sought," Chairat said.

Meanwhile, the number of bus passengers during the Songkran holiday increased 10 per cent over last year's figure, to 1.1 million.

Wutthichart attributed the increase to rising oil prices, which he said had discouraged motorists from using their cars on trips upcountry, opting instead to travel by bus.