In Dnipro, the cost of public transportation is increasing.
In Dnipro, starting from January 3, 2025, an increase in public transport fares is anticipated. A bus ride will now cost 20 hryvnias, while travel on electric transport (trams, trolleybuses) and the metro will be 10 hryvnias. This was reported by "Vidomo," citing the Dnipro City Council.
This marks a significant price jump compared to the last increase that occurred in July 2022. At that time, the rise in fares was attributed to a crisis related to supply issues and a sharp increase in diesel fuel prices.
The current fare hike is driven by a complex set of factors that have accumulated over the past period.
Key reasons include
- Sharp rise in the euro exchange rate: A significant portion of spare parts and equipment for urban transport is imported, and the strengthening of the euro directly affects the cost of maintenance and repair of vehicles. This is particularly relevant for electric transport, where the procurement of components often occurs in European countries.
- Increase in energy resource costs: Rising prices for electricity and diesel fuel, including expenses for diesel generators used during rolling blackouts that have become commonplace during the war, significantly raise operational costs for carriers. It is important to note that using generators not only increases fuel costs but also accelerates wear and tear on equipment, necessitating additional expenses for repairs and maintenance.
- Increase in minimum wage: The rise in the minimum wage, although necessary to maintain an adequate living standard for the population, raises carriers' labor costs for drivers, conductors, and technical personnel. This factor, combined with others, significantly impacts the overall financial burden on transport companies.
- New tax obligations: The introduction of new tax obligations by the government for enterprises operating in the passenger transport sector has also led to increased expenses and reduced business profitability. This exacerbates an already challenging economic situation for urban transport.
- Funding deficit: Perhaps the most serious factor is the significant funding deficit for urban transport, resulting from the withdrawal of more than 2 billion hryvnias in reverse subsidies from the city budget. This has led to a severe financial crisis and the urgent need for tariff adjustments.
Despite months of negotiations (over three months) and thorough economic analysis, the city authorities were compelled to decide on increasing fares to avoid a complete halt of public transport in Dnipro.
Previously, we reported that in the city of Dnipro, stops were canceled on two tram routes