The Association of Labor Unions of the Mongolian Transportation and Refinery Trade and the Bus Operating Union made a statement regarding bus fares on Wednesday.

The Association of Labor Unions said that “We buy diesel for 1,850 per liter as the Government cancelled excise tax for wholesale price of diesel and value-added tax. Before that diesel price was 1,600 MNT per liter. As a result public service buses pay more than owners of private vehicles. Currently, the expenditure per passenger per day is estimated at 560 MNT. Public service bus fares cannot change automatically every day like primary products such as vegetables and meat. The bus fare is set out once a year with a deal. Due to such circumstances we demand the increase of bus fares up to 600 MNT per passenger.

The Association of Labor Unions is to submit the petition to the Government in order to have the issue resolved.

The demands in the petition including compensation for the diesel price difference or regulation on discount price diesel for public transportation.

The association also challenges the Government for the postponing of the payment of loans for 400 new buses. According to the Bus Operating Union they could not build up the necessary financial resources for the payment of the loans. At the end of the statement the Association said that they would keep bus fares at 500 MNT not 600 MNT if the Government accepts these extra demands.

The Association wants the Government to re-consider social welfare policy which allows a number of people to travel for free on public transportation buses.