Bangkok: The Federation of Transport Operators has announced a necessary increase in transportation fees due to escalating fuel costs. Dr. Thongyoo Kongkhan, President of the Federation of Land Transport of Thailand, expressed the decision with reluctance, acknowledging the potential impact on the public.
According to Thai News Agency, Dr. Thongyoo revealed after a federation meeting, attended by representatives from 136 associations across various transport sectors, that the increase in fees is unavoidable. The decision stems from fuel costs contributing to 45-50% of transportation expenses, making it unsustainable for operators to maintain current rates.
The proposed fee increase will be implemented gradually, affecting different types of transport vehicles from 4-wheel trucks to 24-wheel semi-trailers. Initially, a 10% rise is planned, with potential adjustments to 15% and 20-30%, contingent on fuel price trends. The surge in fuel prices, from 30 to 39 baht per liter, has already led to a 3-5% rise in logistics costs per 1 baht increase in fuel price.
Dr. Thongyoo confirmed that nationwide transportation rates will begin adjusting on April 1, 2026. Each operator will negotiate price changes based on existing contracts, ensuring fairness by decreasing rates if fuel prices drop. He emphasized the balance between necessary adjustments and public fairness, contrasting with other goods that do not lower prices.
The federation is also considering the implications of ceasing operations if fuel prices continue to rise despite increased rates. Further discussions with the government are anticipated, as current assistance measures lack clarity in cost reduction effectiveness. The federation is willing to pause fare hikes if government initiatives prove beneficial. However, persistent challenges may necessitate new proposals for targeted assistance.
Dr. Thongyoo acknowledged the inevitable economic ripple effect of increased transportation costs, particularly affecting grassroots citizens. Higher transport fees will likely elevate consumer goods and services prices, impacting various economic sectors. Despite this, operators do not intend to burden the public more than necessary, emphasizing the need for business survival.
The federation has requested public understanding, committing to reducing transportation costs as soon as conditions allow. Dr. Thongyoo called on the government to ensure adequate fuel supplies and investigate the "mystery figure" allegedly benefiting from the situation, as identified by an academic claiming they have gained 16 billion baht recently. He urged media involvement in uncovering this figure to address the widespread impact on Thailand.