Transport Fares Go Up By 50 Percent

The price of bread has gone up while transport fares have also moved northwards, a clearest sign of increased economic turmoil coming on the back of recent monetary and fiscal policy measures.

It now costs $1,50 to buy a standard loaf of bread, 50% more expensive and way above Zimbabwe’s annual inflation rate.

Transport Fares Go Up By 50 Percent

Short-distance travel, rated at 50 cents since the economy dollarised in 2009, now costs 75 cents. Long distance travel now costs $1,50, up from $1 since 2009.

The fares increased this past weekend as commuter omnibus operators face higher fuel and motor spare parts costs from the new tax imposed last week.

“It is really the instability in prices and the pricing system which resulted in price increases of fuel and spares. So mainly, it’s a response to the price increases in the inputs required in transporting, which are fuel and spares,” National Transport Workers Union of Zimbabwe president Noah Gwande said yesterday.

In addition to that, it is also a response to the uncertainty of government. Government is not coming up with a firm position, which would assist businesses make informed decisions.

“We do not have a formal government response to the crisis as we speak, so people are hedging themselves against price increases by resorting to increasing spares or anything commodity or service. There is a lot that is not being explained that is really affecting every person.”

Millions of people in Zimbabwe rely on public transport service to travel to their work places, according to 2016 statistics from the Greater Harare Association of Commuter Omnibus Operators.