Why are bus & taxi fares still same given oil prices ?

[monkey104]

It's nothing new really. Since when have utility companies reduce costs when oil is cheap?

[roosterboost]

 

Errr, they made public announcements. It was in the news...

 

How do you not know?

 

---------- Post added 09-12-2014 at 15:47 ----------

 

http://www.theguardian.com/money/2012/jan/03/bus-fare-rises-outstrip-inflation

 

Nearly 3 years ago.

 

 

---------- Post added 09-12-2014 at 15:50 ----------

 

http://www.portsmouth.co.uk/news/traffic-travel/bus-fare-hike-sparks-anger-from-users-online-and-at-station-1-5783984

 

 

 

And from the Star (in 20009)

 

Well actually it says fares were rising because of the challenging economic situation, the increased costs of running a bus company, increases in the price of fuel and cuts in government grants between 3 and 5 years ago. Are you claiming that the cost of fuel is less than it was 3 years ago?

Edited December 9, 2014 by roosterboost

[small_hall]

 

Plus bus fares in Sheffield are cheaper than many other areas due to competition and the bus partnership.

 

this is true. I have friends who live in Wells which is around an hour from Bristol. The fare from Bristol to Wells was £6.50 ish when was last there. Thats one way. Fares are definitely cheaper in sheffield.

[sgtkate]

As they are bought in bulk in advance, that means the fuel prices when the fuel is bought will affect them. As it's only just started to fall, we can assume that if it stays low or keeps falling then when they buy the fuel for next year it'll be cheaper and prices will either go down a little or stay the same as least (wages and other costs will still go up so it's not only fuel prices that impact on ticket prices). Of course I'm not foolish enough to actually believe they will go down, but we will have to wait a bit longer to see how it plays out.

[roosterboost]

As they are bought in bulk in advance, that means the fuel prices when the fuel is bought will affect them. As it's only just started to fall, we can assume that if it stays low or keeps falling then when they buy the fuel for next year it'll be cheaper and prices will either go down a little or stay the same as least (wages and other costs will still go up so it's not only fuel prices that impact on ticket prices). Of course I'm not foolish enough to actually believe they will go down, but we will have to wait a bit longer to see how it plays out.

 

I wouldn't hold my breath. A litre of diesel will propel a bus around 2 miles. If the cost of a litre of diesel falls by 5p the cost of running the bus drops by 2.5p per mile. If on average a bus contains 25 passengers the cost saving is 0.1p per passenger mile. So you could reasonably expect your fare for a 5 mile bus ride to fall by 0.5 pence.

[Joe-b-1]

Why do you think fuel prices are the major cost in operating a bus company?

 

Whether they are or not isn't really the point they used fuel costs to put the price up so it ought to work both ways. We all know it won't though.

 

---------- Post added 09-12-2014 at 17:13 ----------

 

How do you know that they did?

 

I can remember them doing this.

 

---------- Post added 09-12-2014 at 17:19 ----------

 

The bus companies now get less tax relief on fuel, staff costs go up, other costs increase too....

 

Plus bus fares in Sheffield are cheaper than many other areas due to competition and the bus partnership.

 

I have caught buses in Leeds, Derby, Manchester, Leicester, Nottingham and Birmingham this year and I can't agree or disagree - all fairly similar of course if you were to go further down south they would probably be more expensive in the home counties but then again so is everything else - the average income is higher as well.

 

---------- Post added 09-12-2014 at 17:33 ----------

 

this is true. I have friends who live in Wells which is around an hour from Bristol. The fare from Bristol to Wells was £6.50 ish when was last there. Thats one way. Fares are definitely cheaper in sheffield.

 

Are you kidding? That is really cheap for one way. It's at least 24.8 mile if the bus goes the shortest route (which I very much doubt). Note we are on about local bus services here not national express coaches.

Edited December 9, 2014 by Joe-b-1

[clinteastwoo]

Why do you think fuel prices are the major cost in operating a bus company?

 

Its just that that is the reasoning for putting up fares so you would assume that if its a major factor then as prices drop so should the fare.

 

Or is this logic flawed in some way ?

[roosterboost]

Its just that that is the reasoning for putting up fares so you would assume that if its a major factor then as prices drop so should the fare.

 

Or is this logic flawed in some way ?

 

I'd say the original premis is flawed. An average bus driver in Sheffield probably does around 500 miles per week. That bus requires twice as many staff in admin and maintenance. So 3 peoples wages to run one bus. That's probably around £1500 per week for a bus to travel 500 miles. Never mind cost of buying and parts for servicing buses. A bus costs £3.00 or there abouts a mile just in manpower. With insurance, rent on premises, road tax etc etc.. Fuel costs are a drop in the ocean.

[No User Name]

this is true. I have friends who live in Wells which is around an hour from Bristol. The fare from Bristol to Wells was £6.50 ish when was last there. Thats one way. Fares are definitely cheaper in sheffield.

 

Seems reasonable for an hours trip. Look at National Express prices from Sheffield to Leeds, that's about an hour and roughly the same sort of price.

[Cyclone]

Well actually it says fares were rising because of the challenging economic situation, the increased costs of running a bus company, increases in the price of fuel and cuts in government grants between 3 and 5 years ago. Are you claiming that the cost of fuel is less than it was 3 years ago?

 

Yes.

 

What is this. Prove the obvious to roosterboost day?

 

---------- Post added 10-12-2014 at 07:30 ----------

 

I wouldn't hold my breath. A litre of diesel will propel a bus around 2 miles. If the cost of a litre of diesel falls by 5p the cost of running the bus drops by 2.5p per mile. If on average a bus contains 25 passengers the cost saving is 0.1p per passenger mile. So you could reasonably expect your fare for a 5 mile bus ride to fall by 0.5 pence.

 

So what you're saying is that they LIED through their teeth when they claimed that fares were rising because of fuel costs.

 

I don't know why you're defending them, but they can't have it both ways.

Either it wasn't significant in 2009 and isn't now. Or it was, and it is.