Local transport company, DKV Zrt., last implemented a fee increase of nearly 10 percent in August 2022, and now the transport company has proposed it again to the municipality.
The DKV fare increase was almost 5 percent higher than the inflation rate last year, and the central bank forecast inflation this year to be between 15 and 19.5 percent. Taking this into account, DKV Zrt. is proposing an average increase of 14.7 percent from 1st of May 2023, which, if adopted by the general assembly, could increase net-fare revenues by HUF 510 million in 2023.
Gergely Pacza, Head of Urban Development Department, said that approximately 30 percent of the operating costs of local public transport are covered by the revenue from fares paid by passengers, while the remaining 65 percent of the costs are reimbursed by the municipality and 5 percent by the state to DKV Zrt.
Significant increases in energy and fuel prices, wage costs, and other increased costs have had a particular impact on the management of DKV Zrt., and, thus, on the maintenance of public transport. As a consequence, timetables have been modified several times.
In line with the city’s efforts to save electricity, from 14th of January 2023, trams are replaced by tram-substitute buses on the weekends.
The increase with inflation would provide the necessary funding to fully restore tram services on tram lines 1 and 2 from 1st May 2023, i.e., trams could run again on Saturdays and Sundays.
DKV also proposes introducing group ticketing, as the earlier introduction of the cheaper small group ticket has eliminated the need to buy group tickets over the years.
The half-month pass would also be abolished, while the current monthly pass system would be maintained and an electronic pass would be introduced for travel between the beginning of the month and the end of the following month. Monthly season tickets are currently redeemable at half price until the 15th of the month, which would be amended so that monthly and mid-month season tickets could be redeemed in full before the start of the validity period, subject to the payment of a handling fee.
The DKV Zrt. also proposed to increase the surcharges.