30 Hryvnias for the Metro: The New Fare Explained
Where did the new fare come from, and what does that figure actually cover? Transport planning expert Dmytro Bespalov has examined the cost of a single trip on the Kyiv Metro, which city officials claim is nearly 65 hryvnias. He pointed out inconsistencies in their calculations, particularly regarding asset depreciation and the inclusion of capital expenditures. Bespalov stated that the actual cost for a paying passenger would be around 45 hryvnias, while the real revenue the metro operator receives per passenger is roughly 20 hryvnias. For context, the Kyiv Metro is a vital part of the city's transit system, carrying around 1.3 million passengers daily before the pandemic.
Flaws in the Cost Breakdown
To determine the cost per passenger, all of the metro's expenses must be divided by the total number of riders. However, a large portion of the metro's infrastructure is already fully depreciated and carries no book value. The city has also approved a metro development program worth around 10 billion hryvnias, which could influence how future fares are set.
“Where does a company that produces nothing but passenger transport get its money? It's logical to assume these costs were baked into the cost estimate in advance,” Dmytro Bespalov noted.
A second issue involves folding future capital investments into the current fare, which could artificially inflate the cost of transport. Plans are moving forward to raise the single-trip fare to 30 hryvnias, but the expert has voiced concerns.
“If you raise the fare, people will just start moving around less. Someone might think: I'd go to a pizzeria, but 45 hryvnias there and 45 back — I'd rather just make scrambled eggs at home,” Bespalov explained.
He added that the metro's actual revenue per passenger would not be 30 hryvnias, but closer to 20. “The burden on the paying passenger, therefore, increases significantly,” the expert stressed.
Half of Kyiv's residents make at least one transfer during their commute, which could impact overall ridership. A fare hike might reduce the number of passengers, which in turn would drive up the cost per trip. Such changes in fare policy could have serious consequences for public transport in the capital.
The proposed fare increase to 30 hryvnias for a single ride on the Kyiv Metro has become a pressing issue for both city authorities and passengers. With rising operational costs and the need for infrastructure modernization, the city is trying to balance financial stability for the metro operator with affordable transit for residents. Expert assessments suggest that the fare hike could hurt ridership, potentially worsening the metro's existing financial troubles. In this situation, it is crucial to consider the input of specialists and the public to shape an effective fare policy.
As the fare for a single metro ride is set to increase to 30 hryvnias starting July 15, many Kyiv residents are concerned about the implications of this hike. Understanding the financial dynamics behind the fare adjustment is crucial, especially considering the potential impact on daily commuting habits. For a deeper analysis of the upcoming fare changes and their effects on the city's transit system, read more about the fare increase for Kyiv residents.