Land Public Transport Commission (SPAD) chairman Tan Sri Syed Hamid Albar has said that the fare rates of land public transport like buses or taxis are not dictated by world oil prices, even as the latter has been falling steadily, according to Bernama.

The former home minister said that this was because the cost of petrol or diesel only constitutes 10% of the operating costs of the companies providing public transport services, adding that the cost of maintaining these vehicles on the road affected the fare prices more.

“There are other influencing elements, such as the goods and services tax (GST) imposed on vehicle spare parts,” Syed Hamid said. “Aside from that, the companies have to bear with higher insurance premiums and fluctuating foreign exchange rates.”

Additionally, Syed Hamid claimed that while commuters had complained about land transport fare increases, they also said that the quality of these services were much improved now.