THE HEAD of the Land Transport Federation today (Feb. 27) tearfully announced raising charges because higher fuel prices made it difficult to maintain the cost structure while fearing a domino effect, Amarin TV said.
Dr. Thongyoo Kongkhan, the federation’s president, said 136 associations nationwide covering road, bus, and water transport sectors attended a meeting where it was resolved to increase freight rates due to inability to absorb rising fuel prices, which account for 45-50 percent of total transportation costs.
The price hike will be implemented in a “tiered” manner, covering six to seven types of transport vehicles, from four-wheel trucks to 24-wheel semi-trailers. The first increase will be 10 percent, with further hikes of 15 to 20-30 percent to be considered depending on the fuel price situation which has risen from approximately 30 baht to 39 baht per litre.
This then results in an average 3-5 percent increase in logistics costs for every 1 baht increase in fuel prices.
The new transport rate will take effect from April 1 as an initial measure, he said, adding each operator will still need to negotiate price adjustments according to contract terms, both on case-by-case basis and with long-term contracts.
He emphasised that if fuel prices decrease, transport charges will also decrease accordingly to ensure fairness to the public, unlike some goods where prices tend to go up and not down later.
Regarding the possibility of the federation ceasing operation altogether if fuel prices continue to rise, even after transport rates have reached the third tier of adjustments, Thongyoo said further discussions are needed on this issue which will be considered in conjunction with government assistance measures.
Currently, the cabinet has several guidelines on assisting transport operators, but details and clarity on their effectiveness in reducing costs are still pending. If government measures help operators survive, rate increase will be delayed. However, if the situation does not improve, the federation may need to consider additional measures and prepare a new proposal to the government to provide more targeted assistance.
When asked about the domino effect on the economy, Thongyoo responded in a trembling voice and teary eyes that the increase in transport charges would inevitably have a ripple effect, especially on people at the grassroots level. It would immediately push up prices of consumer goods and could spread to many sectors of the economy.
However, he emphasised that businesses do not want to burden the public, but must proceed for their survival. Failure to adapt could lead to the collapse of the transport system, resulting in far more severe consequences. He requested understanding from the public, stressing that if the situation improves, they are ready to reduce transport charges in line with costs immediately.
Furthermore, he is preparing to submit additional demands to the Department of Land Transport for the government to consider targeted assistance measures. If sufficient support is received, he is ready to delay or manage transport rate increases to minimise the impact on the public.
He also called for a serious solution to structural energy issues, as previous measures were believed to benefit certain groups. The government was urged to use this crisis as an opportunity to adjust and make the system fairer, as both the public and businesses are still bearing high costs.
CAPTION:
Top and Front Page – Dr. Thongyoo Kongkhan. Photo – Amarin TV
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