If any operator thinks it can dictate conditions out of the contract such as the automatic increase in prices it will automatically have its licence revoked,” warned Tirana Mayor Lulzim Basha
TIRANA, March 18 – The Municipality of Tirana has warned public transport companies that any unilateral increase in bus fares would automatically strip them of their licences. Reacting to claims by the Tirana Association of Urban Transport which demands a more than double increase in bus fares, Tirana Mayor Lulzim Basha assured that no price increase can be made before a study is carried out.
“We are conducting a study which will prove if measures are needed for the structure of price and discuss conclusions with market operators,” said Basha warning that any unilateral increase in prices by the public transport operators contracted by the municipality would result in their licence revocation.
“If any operator thinks it can dictate conditions out of the contract such as the automatic increase in prices it will automatically have its licence revoked,” warned Mayor Basha.
Some seven companies currently operate in the Tirana public transport
Claiming difficult financial situation, the Association of Urban Transport in Tirana has called for an increase of the bus fares to 70 lek (Euro 0.5), up from lek 30 currently. In a statement, the Association claims unaffordable fuel prices and fake documents are taking the public transport in Tirana to bankruptcy.
Announcing that bus fares in neighboring Kosovo, Macedonia and Montenegro stand at 70 lek the Association says that alternative measures such as lifting excise tax and VAT from fuel and security measures on season tickets could be imposed. Currently, the excise tax on fuel stands at 37 lek/litre.
Last January, the Competition Authority launched a probe into the urban transport companies operating in Tirana after identifying signs of abuse with the trade of monthly season tickets. Preliminary investigation has shown there is indication of limited competition in the sale of general and students’ season tickets by members of the National Association of Urban Transport, offering smaller number of season tickets.
This behaviour could bring limited or distorted competition, forcing consumers to buy bus fares which are much expensive in order to use public transport in Tirana. Several urban bus lines operate in Tirana.
A decision by the municipal council and later government is needed for urban transport prices to increase, but the municipality has indicated it rejects price increases.
