The Transport Ministry has put the brakes on the State Railway of Thailand's (SRT) attempt to raise fares by 10%.
Chadchat: Services must improve first
Minister Chadchat Sittipunt said the outcome of a meeting yesterday was to reject the SRT's proposal to raise fares on third-class services.
The ministry instructed the SRT to report this week on how it was improving services, Mr Chadchat said, adding that if no such upgrade was carried out, the fares would not be increased.
"The government realises the [proposed] hike for fares in third class, which mainly concerns the poorest passengers, must be done carefully," Mr Chadchat said.
"We must consider whether the SRT has improved services in the past two to three years."
The SRT has not raised its fares for 20 years despite the Finance Ministry's stance backing a fare hike.
The Finance Ministry wants to reduce the government's subsidy.
He conceded the cost of running the third-class service came to 10 times more than revenue raised from fares.
Mr Chadchat said the SRT has other options to increase its revenue, especially by improving its services to draw more passengers.
A 10% increase in fares could result in a decline in the number of passengers, he said.
Referring to the subsidy, Mr Chadchat said the Transport Ministry may have to discuss the matter with the Finance Ministry.
The cabinet may also consider extending free train service campaigns, which are due to end next month, he said.
The minister said a survey of passengers during a train trip with Prime Minister Yingluck Shinawatra last week found that most respondents were unhappy with train services, specifically citing the poor sanitary conditions of toilets and the "bad behaviour" of conductors.