GOVT ENGAGING BUS OWNERS AND TAXI OPERATORS ON PROPOSED BUS FARES ADJUSTMENTS

GOVT ENGAGING BUS OWNERS AND TAXI OPERATORS ON PROPOSED BUS FARES ADJUSTMENTS

Minister of Transport and Logistics, Hon.Frank Tayali has told Parliament that the Government has engaged the Bus Owners and Taxi Association of Zambia (BTOAZ) on the proposed bus fare adjustments for the month of July following the reduction in the price for diesel and petrol from K27.12 to K23.13 and K31.36 to K28.00, respectively.

Hon.Tayali disclosed this during a Ministerial Statement on Transportation Fee Adjustments and mechanism used by Government to regulate bus fares in response to changes in fuel prices which was delivered in Parliament this afternoon.

Here are the highlights;

✅Mr Tayali explained that Government adjusts bus fares on a monthly basis depending on adjustments to the fuel pump prices. He said the adjustments are determined using a cost-based fare model that was developed by the Bus and Taxi Owners Association of Zambia (BTOAZ) in collaboration with the State through the Road Transport and Safety Agency (RTSA).

✅He said this model provides a structured framework to assess the impact of fuel price movements on operational costs for public service transport providers and takes into account variables such as fuel consumption, maintenance, depreciation, and administrative costs.

✅These changes, the Minister pointed out, are implemented to ensure fairness to both transport operators and the commuting public.

✅Reaffirmed Government’s commitment to adjusting fares in a manner that balances the need to sustain public transport operations on one hand, and protecting the commuting public from unjustified increases.

✅Revealed that from January to June 2025, the Ministry through RTSA in collaboration with BTOAZ has consistently applied the Bus Fare Adjustment model in response to fuel changes which recorded various fluctuations in pump prices.  

✅Accordingly, the bus fare model was applied to determine appropriate adjustments. I will now provide an update from January 2025 to date. 

✅The Minister updated that in January 2025, there was no adjustment in the price of bus fares as there was no increase in the price of diesel, but only on the petrol price
-February 2025: There was a marginal increase in the price of diesel and petrol, which was below the trigger point of at least K2.00. Therefore, there was also no bus fare adjustment.

-March 2025: There was no increase in both the price of diesel and petrol, thus there was no adjustment on bus fares.
-April 2025: There was a significant reduction in the price of diesel from K32.54 to K30.23 which resulted in a reduction of prices for intercity routes by 2.4%. Other routes mainly inter-mine and peri urban routes (Lusaka and other towns) reduced by K1.00. 

-May 2025: There was again a significant reduction in the price of diesel and petrol from K30.23 to K27.38 and K34.98 to K32.14, respectively resulting in the reduction of prices for inter-city routes by 3.3% while prices for inter-mine and peri-urban routes reduced by K1.50.
-June 2025: There was yet another significant reduction in the price of diesel from K27.38 to K25.13 resulting in a price reduction for inter-city routes by 2.7%. Petrol reduced from K32.14 to K31.36 resulting in a reduction of prices for all the local routes by an average of K1.00.

✅Hon.Tayali, noted there was a cumulative reduction in prices for inter-city routes of 8.4% from March to June 2025 while on the other hand, the cumulative reduction in prices for local routes has been K3.50 during the same period. 

✅Stated that as for the month of July, where the price for diesel and petrol has reduced from K27.12 to K23.13 and K31.36 to K28.00, respectively, the Government has engaged the Bus Owners and Taxi Association of Zambia (BTOAZ) on the proposed bus fare adjustments. 

✅The Minister also highlighted to the house that once a fuel price change is announced, the Government undertakes a process to assess and implement fare revisions.

The following steps are undertaken: 

1. Analysis: When the Energy Regulation Board (ERB) adjusts fuel prices, the Government through RTSA initiates an immediate technical review using the fare model;

2. Stakeholder Engagements: RTSA meets with BTOAZ to validate the model’s output;
3. Ministerial Approval: Proposed fare adjustments are submitted to my office for policy and administrative clearance; and
4. Public Notification and Enforcement: Once approved, new fares are publicly announced through formal communication channels. Enforcement teams ensure compliance across the country. 

✅He said the model also accounts for modest thresholds in fuel changes as it prevents reactionary fare increases or decreases for marginal fuel fluctuations and ensures pricing stability and predictability for the public and operators alike.

✅Hon.Tayali reiterated that Government remains committed to fairness and transparency in the regulation of public transport fares and it will continue to implement bus fare adjustments in line with the fuel pump price adjustments while upholding the principles of consumer protection, affordability and operational sustainability.

MIM