Appeal from passenger transport companies to the ministry: “We have not been given a subsidy” |

Gubad Ibadoglu: “Most likely in public transport fare will be raised”

Baku collective appeal to the Ministry of Economy of 19 private transport companies that carry out the majority of passenger transportation in the city and surrounding towns did.

The petition states that due to the pandemic, 2020They were not given any assistance from the 280 million manat allocated by the state for the purpose of assistance to passenger transport companies.

“81% of public transport in Baku is controlled by private transport companies. Based on the financial statements, we report that the fares currently available in passenger transport are not sufficient to cover the financial costs. The pandemic that has been raging for nearly three years has seriously hit passenger transport companies and the population social– has led to a sharp decrease in economic activity and passenger flow, and a huge financial loss by reducing our income opportunities to a minimum.”

“In 2021, the price of diesel fuel in the country has been increased by 33% to 80 kopecks. The amount of the subsidy allocated to neutralize the impact of the increase in the price of diesel fuel on business entities engaged in passenger transportation is the additional amount caused by the increase in the price of fuel. funds covers a small part of the loss”, the application states.

It is also reported that due to the pandemic, 2020allocated by the state in order to help passenger transport companies funds they were not given:

“4 of the Cabinet of Ministers April 2020280 million manats for the provision of financial support to the “vital passenger transport area” by the decision dated funds left. Although a part of those funds was intended to ensure the financial stability of passenger transport companies operating in Baku, these funds were not paid to us. The allocation of these funds during the pandemic reflects the attention of our state to the field of passenger transportation. Undoubtedly, its payment would have a positive impact on the activities of companies in a difficult situation.”

The transport companies said that they pay 5% of the funds collected to “BakiKart” based on the number of passengers they carry every day, and that this is a rather large percentage, and asked to reduce that fee.

At the same time, the application emphasized the importance of implementing alternative payment systems in public transport and completing the transition to card payment.

The heads of the company asked to be accepted at the Ministry of Economy and said that it is important to take urgent measures to solve the numerous problems that have arisen.

Economist Natig Jafarli told Meydan TV that it is rude not to allocate subsidies to private companies. law is a violation.

He added that there is a need for centralized management of the transportation system in Azerbaijan:

“In Azerbaijan unit there is no concept of central control. The state has dominance here. Baku Because Metropoliteni and “BakuBus” LLC is a state company state budget The main goal is to improve their material and technical base. But the private sector itself is responsible, it buys and repairs the bus itself. It is fundamentally wrong to have such a step-child attitude towards the private sectors. Unit the absence of a transport system also leads to a violation of the competitive environment.”

The expert added that there will be a price increase in public transport at the end of this year and at the beginning of next year.

Economist Gubad Ibadoglu he says that private companies complaint they are right to do.

According to him, 86 million 900 thousand manats out of 280 million manats allocated for passenger transportationAzerbaijan Weather 15.5 million manats to “Yolaryi” JSC National Transferred to Aviation Academy:

“Most likely on public transport fare will be raised, the new options currently being discussed in the government are to increase 1 ride to 40 or 50 kopecks”.

Transport expert Eldeniz Jafarov told Meydan TV that it is more appropriate to allocate certain subsidies to those transport companies than to raise prices:

“At this time, the state can make certain demands to those private transport companies so that they improve the quality of public transport. Let them serve with higher quality. It does not seem realistic to increase the price until the end of this year.