FOLLOWING a steady drop in fuel prices, government has engaged in discussions with bus and taxi operators on potential bus fare reductions for the month of July, igniting a sense of optimism amongst commuters who have been grappling with high transportation costs.
Minister of Transport and Logistics Frank Tayali confirmed that government is in talks with the Bus and Taxi Owners Association of Zambia (BTOAZ), and is considering reducing bus fares following the recent decrease in fuel prices from k27.12 to k23.13 for diesel and from k31.36 to k28 for petrol.
In a ministerial statement to parliament, Tayali explained that bus fares are not adjusted randomly, but rather through a structured system known as the cost-based fare model, developed by BTOAZ and the Road Tranaport and Safety Agency (RTSA).
Tayali stated that this system is reviewed monthly to account for changes in fuel prices, ensuring that bus fares are fair and accurately reflect market conditions.
He emphasised that the variables considered in the assessment include fuel consumption, maintenance, depreciation, and administrative costs.
Tayali explained that the model’s primary objective is to establish fair and appropriate bus fares, ensuring that transport operators can sustain their businesses while passengers benefit from affordable and reliable transportation.
Tayali disclosed that between January and June 2025, the Ministry, in conjunction with RTSA and BTOAZ consistently utilised the Bus Fare Adjustment model to address the changing fuel prices and during this period, fuel prices fluctuated, necessitating adjustments in the bus fares.
He observed that from March to June 2025, the prices for inter-city routes had seen a cumulative reduction of 8.4 percent, while local route prices had experienced a cumulative decrease of K3.50 during the same period.
He also outlined the process undertaken by government after the Energy Regulation Board (ERB) announces fuel price changes, which involves a thorough review and eventual implementation of fare revisions.
“Immediately following the fuel price adjustment by ERB, government through RTSA, begins a technical review using the fare model to determine the effect of the fuel price change on operational costs and after the initial assessment, RTSA and BTOAZ hold consultations to further refine the fare adjustments,” he disclosed.
“After undergoing the consultation phase with BTOAZ, proposed bus fare adjustments are submitted to his office for final policy and administrative clearance and following approval, the new fares are officially announced through appropriate channels, informing the public of the changes.”
However, enforcement teams are then deployed nationwide to ensure compliance with the revised bus fares.
Tayali underscored that the Bus Fare Adjustment model is designed to prevent erratic fluctuations in bus fares by incorporating modest thresholds for fuel price changes.
The minister affirmed government’s ongoing dedication to equitable and transparent regulation of public transport fares.
He further assured the public that bus fare adjustments would continue to be made in response to fuel price changes, while ensuring fair and sustainable pricing for both consumers and operators.
By Sharon Zulu
Kalemba July 4, 2025
