Sumatra dims hope for lower bus fares

In Summary

• The Surface and Marine Transport Regulatory Authority (Sumatra) is a multi-sectoral regulatory agency which was established by an Act of Parliament (No. 9) of 2001 to regulate Rail, Road and Maritime transport services. Sumatra Act came into force on 15th August, 2004 as per Government Notice No. 297 published on 20th August, 2004. Among others Sumatra promotes effective competition and economic efficiency; protects the interests of consumers as well as the financial viability of efficient suppliers

Dar es Salaam. The Surface and Marine Transport Authority (Sumatra) yesterday dashed hopes of lower transport costs even as a commuter lobby group was petitioning the government to compel the agency to act.

Sumatra Public Relations officer David Mziray said the agency could not lower prices abitrarily without following the due process. He said the law required consumers to file any appeals for action through the Sumatra Consultative Council to initiate a review.

However, Mr Mziray added a rider. He said prices are lowered through a wholesome approach that looked into various cost implications rather than the one aspect of oil prices. “It is also instructive to note that Sumatra already revised prices down in 2009 by up to 12 per cent as mitigation to lower inflation and reduction in the prices of petroluem products,” he noted, to dim any hope for lower prices any time soon.

The official further said prices are set with a motive to raise competition among operators and allow for reasonable room for recouping investments by those in the sector.  

Earlier, a lobby group petitioned the government to compel Sumatra to lower fares to match the decreasing global prices of oil. The lobby representing the interests of commuters said transport costs should be brought down by at least 25 per cent.

Addressing a press conference in Dar es Salaam, the lobby’s spokespersons, Mr Hassan Mchanjama, challenged Sumatra to come out clean on the matter. 

“We wrote to Sumatra officials asking them to cut down the fares but, unfortunately, we have not received any response,’’ he said.

He said while a price reduction was planned for electricity, Sumatra was not showing any signs of passing a relief to commuters. “With the recent reduction in the cost of fuel, motorists and PSV operators are already making huge savings but not the passengers,” lamented Mr Mchanjama. 

Early this month, the Energy and Water Utilities Regulatory Authority (Ewura) slashed the price of oil by nine per cent in response to declining global prices. Already, Tanzania Electric Supply Company Limited (Tanesco) has also said it would reduce the cost of electricity by 2 per cent on March 1, if the prices of oil in the world market remain stable.

Yesterday, Mr Mchanjama said commuter and upcountry bus operators were raking in huge profits while majority of passengers were still carrying the burden of fares. He added that the number of passengers reported to Sumatra did not correspond to the reality in the market as other operators transports more than the carrying capacity of their vehicles.

He asked Transport minister Samuel Sitta to intervene in the matter.