Companies engaged in transportation have already received notifications from fuel wholesalers about price revisions in accordance with global events, as well as about a possible increase in refueling by at least 15%.
What will happen to ticket prices for passengers in this situation? It is clear that they may rise if carriers do not receive assistance. We will discuss all of this in more detail below.
"To compensate for the rise in prices, an additional 10–12 million is needed"
If fuel prices continue to rise, passengers will likely have to reckon with the cancellation of several more flights, say passenger transport carriers, urging the state to compensate for the growing expenses.
Companies note that currently about 30% of all expenses are related to fuel purchases. Carriers are forced to seek additional funds to ensure the operation of all routes.
Seeing the current trend in expenses, companies are concerned about what the situation will be like in a few months.
The Latvian Association of Passenger Carriers warns that if the state does not provide additional funding, there may come a time when not all buses will be on the road.
"If at the beginning of the year, as indicated by the Ministry of Transport, there was already a shortfall of 9.2 million euros, now we have calculated that if the price remains at the current level — effectively with an increase of almost 40% since the beginning of March — then in addition to these 9.2 million euros, the Ministry of Transport will need to find about 10–12 million euros more to compensate for the rise in fuel prices," said Ivo Ošenieks, president of the Latvian Association of Passenger Carriers, to journalists.
What about tickets?
Ošenieks added: "If such additional funding is not found, we will have to look for other solutions."
Meanwhile, for passengers, the main question is whether ticket prices will rise. The industry notes that no changes are currently planned, but everything will depend on how the situation develops in the coming months.
While solutions are being sought, carriers do not plan to raise ticket prices.
In the meantime, the Road Transport Administration (RTA) has decided to increase advance payments to companies, but the industry says that investments need to be significantly larger.
Walking is cheaper
The rise in fuel prices has already begun to change the behavior of residents in Latvia. According to a survey conducted by the bb.lv portal, 36% of the population have started using their personal vehicles less frequently, trying to cut travel expenses.
More than a third of respondents — 35% — stated that they continue to live in the same mode, not changing their style of movement.
Regional analysis showed that the rise in fuel prices is most strongly felt in Latgale.
