Life Matters | Apr 09,2022
Like the vehicles snaking hundreds of metres from gas stations, commuters have been through their own ordeal. Getting to taxi stations early, especially in areas farther from the city centres, is no longer guaranteed to getting to work or school in time. It has been pushed back by hours in some cases. The woes in public transport are partly driven by the fuel shortages, which appear to have worsened than the usual Addis Abebans experience. The authorities and industry players point fingers at one another. The former claim that monthly upward price adjustments fuel an epidemic of hoarding and contraband practices. Industry players blame poor rollout for lifting fuel subsidies and discouraging profit margins.
Public transport is also experiencing a longer-term, slowly mounting shock. Taxi owners are seeing the industry as a loss-maker with low returns and high risks. Taxi associations are losing members, and some owners are selling their cars to enter other markets. While increasing fuel prices may be compensated with adjusted tariffs, the ballooning prices of spare parts are not considered. Since many minibus taxis are decades old, spare parts are ongoing expenses pushing lower margins. The problem is exasperated by the dual-rate pricing system transport authorities plan to introduce at the gas pumps. To shield commuters from the direct costs of lifting the subsidies, minibus taxi owners must use Telebirr and a unique code to transact at fuel stations.
But progress is lacking. Stickers needed to identify public transporters are yet to be printed, while fuel stations are to integrate the system. Neither have over 100,000 vehicles received their codes. It is a headache that makes the transportation business even less appealing.
You can read the full story here
PUBLISHED ON
Jul 09,2022 [ VOL
23 , NO
1158]
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transportin...
Jul 13 , 2024 . By MUNIR SHEMSU
The cracks in Ethiopia's higher education system were laid bare during a synthesis re...
Jul 13 , 2024 . By AKSAH ITALO
Construction authorities have unveiled a price adjustment implementation manual for s...
Dec 7 , 2024
For decades the Ethiopian Petroleum Supply Enterprise (EPSE), a state-owned giant ent...
Nov 30 , 2024
In the corridors of government offices worldwide, the question of how much to pay mem...
Nov 23 , 2024
The fiscal puzzle deepens as the Council of Ministers approved a supplementary budget...
Nov 16 , 2024
In the realm of public finance, balance sheets speak louder than rhetoric. In such do...