Russian Federal Tariff Service head Sergey Novikov
Photo: Sergey Mikheev
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Train Fare May Rise 8% This Summer
If the Federal Service for Tariffs allows Russian Railways full compensation for additional expenses of 67 billion rubles this year, the average fare will rise by 8 percent, bringing the year's total price hike to 20 percent. FST head Sergey Novikov told Interfax information agency that fares may increase on July 1. The railroad's expenses are due to changing inflation forecasts and rising costs of the products it consumes.
A Russian Railways source quoted the following statistics to Kommersant: In the last 17 years, train fares have risen by 66 times, while industrial prices have risen by 113 times, the price of fuel by 338 times, ferrous metals by 172 times, coal products by 155 times and electricity by 110 times.
The year's first price increase for the railway occurs today, with an increase of an average of 1 percent. The additional funds generated will be used for infrastructure construction projects for the Sochi Olympics. Today's fare increase will raise 25 billion rubes in the next three years, according to monopoly head Vladimir Yakunin. The year's 20-percent fare increase will raise overall inflation by 0.05 percent. It is likely to cause the wave of tariff hikes throughout the transportation industry, however.
www.kommersant.com
All the Article in Russian as of Apr. 01, 2008
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