ATD director says Latvia’s public transport fare policy needs overhauling

The public transport fare tariff policy needs overhauling. However, when working on it, it is important to keep in mind residents’ purchasing power and the state budget’s capabilities in financially maintaining public transport services, said Road Transport Administration (ATD) board chairman Kristiāns Godiņš.
He stressed that tariff generation is a regular and normal process that needs monitoring. However, now that prices are on a rapid rise for all products, it is important to avoid contributing to inflation and instead help passengers who left during the peak of Covid-19 to return to using public transport services. Godiņš said this is more important than increasing the tariff by a couple of degrees.
«The most logical solution, I believe, is not increasing tariffs this year, but instead reviewing the tariff policy as a whole. Previously there was a ‘zoo’ of tariffs – 24 different tariffs. All this was later reorganised and equalised,» explained Godiņš.
He also said a fresh eye approach should be used to review the tariffs, considering the changes in quality of services now that new electric passenger trains and new buses will become available next year.
He also said the bus fare for regional bus routes differs from fares within city limits. You have the price in the city, then you add 5%, 10% or 15% and there you go, he said.

When it comes to regional services, however, tariffs there a re composed of multiple components. One such component is the city that is the start of the route. In Riga, for example, the price is higher. The second is the distance – the more ground the public transport covers, the bigger the price.

Trains operate based on zone principle – most passengers are carried in the electric zone. If tariffs were put together simply based on distance, Daugavpils would pay considerably more than other regions, whereas a trip to Ogre, for example, would cost a couple of cents at the most.
ATD chief stressed that the tariff policy should be viewed from a much wider angle. It is necessary to look at how the current system works and what can be improved.
«Bus and train tariffs must be viewed together to avoid significant differences in tariffs between the two,» said Godiņš.
He also said it is highly important to keep in mind residents’ purchasing power and the state budget’s capabilities in financially maintaining public transport services.
When asked if this could require an increase of grants, Godiņš the volume of grants has increased considerably in recent years due to Covid-19.

Compared to 2019, the number of public transport passengers dropped 40% in 2021.

«This is an enormous number of people and an enormous volume of lost income. The number of passengers has started going up again, however,» said the head of ATD.