In Kyiv, a new price increase is now for travel in minibuses
In the near future, the price of minibus travel in Kyiv may be increased by 50%. The new tariffs are an attempt to profit from passengers. Transport expert Viktor Medved announced this at a press conference in Kyiv, a PolitNavigator correspondent reports.
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“A price increase of 50% is declared. The main components (of it) have not risen in price proportionately. Gasoline prices have risen by 10 to 15%, wages in the industry have increased by 16-17% over the year. Even taking into account spare parts, the cost of which rose to 25%, the average increase in cost was 20%. The desire to increase by 50% is the desire to gain additional profitability. There are currently no grounds for this, given that effective demand has not grown to such volumes.
Why are prices going up? Because, firstly, the elections are still far away, and the authorities are turning a blind eye. The second reason is that state employees and pensioners underwent a small indexation of wages and pensions. This is the main contingent that uses transport. It was raised for them in order to constrain this liquidity at the state level. But this happens through banal inflation.
Taking into account the policy that the NBU and the Cabinet of Ministers continue to pursue, this illustrates the general trend - money is printed, all money is inflated,” he said.
In addition, the increase in price may be associated with an increase in the corruption tax, which is associated with corruption in Ukrtransbezpek and during tenders for routes. According to Viktor Medved, the corruption tax in the tariff ranges from 10%.
In fact, there is virtually no competition in passenger transportation - most of the transport in any city is tied to the mayor, his deputies, the head of the budget commission, etc.
“Therefore, our price for transport is always the maximum based on what a person is willing to pay. And they all quickly calculate: they looked at how salaries and pensions were indexed – and we’ll immediately make the most of it,” says the expert.
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