The transport watchdog has ruled out any increase in bus fares for this year, despite the concession agreement signed with the Spanish-owned operator stating that a revision in prices was due at the start of 2016.

Though the agreement was signed a year ago, this detail only came to light last Wednesday when Transport Minister Joe Mizzi finally tabled the document in Parliament.

According to clause 7.8 of the agreement “all maximum fares shall be the subject to first revision on January 1, 2016, and at annual intervals thereafter”.

While no such revision has taken place, last July Malta Public Transport unveiled a new fare structure and announced the introduction of new bus cards.

There are no grounds to raise ticket prices

The abolition of the €1.50 one-day ticket was the most significant change, as commuters are now being charged on a trip basis. Asked about a possible fare increase, MPT commercial director Daniel Grech referred this newspaper to Transport Malta, saying that matters related to fares and the route network were regulated by the transport watchdog.

A Transport Malta spokesman reiterated that any changes would first require its approval, but was also categorical in stating that fares would not rise.

“Transport Malta has absolutely no intention of increasing the fares.  It is in the commuter’s best interest to keep the fares low. This year the subsidy will decrease by €700,000 from €29.2 million,” the spokesman said.

He also pointed out that the operator could not ask for an upward revision arbitrarily, but needed to justify its demand on the strength of economic factors like inflation and higher fuel prices.

“The fact that the government subsidy, which is based on the aforementioned factors has been revised downward, means there are no grounds to raise ticket prices for this year,” he said.

Under the concession agreement, part of the annual government subsidy is calculated on the basis of “exogenous factors” which might result in economic adjustments to the company’s operation.