Cairo: Egyptian authorities this month hiked fares of the Cairo subway, used by millions of commuters, as part of harsh economic reforms including cuts in state subsidy.
The hikes, the second in less than a year,are based on the length of the journey. Three pounds (Dh 0.62) are charged for the first nine stops; LE5 for 16 stops; and a maximum LE7 for riding the subway from start to finish.
The discounted prices for students, the elderly and people with special needs remain unchanged, the Transport Ministry said in a statement.
In July last year, the price of the metro ticket doubled to LE2 as a standard fare. An estimated 4 million commuters ride the subway, which links the suburbs of the sprawling Egyptian capital.
The state operator of the metro said that the latest increases are aimed at financing its upgrade, mainly the first line that was built in the 1980s. The operation losses of the metro have amounted to LE618.6 million, according to the ministry.
Transport Minister Hesham Arafat defended the new fare hikes as unavoidable.
“The situation could not have been delayed for one more day,” he told state television “The increases in ticket prices are aimed at keeping the facility operational. The ministry needs 26.3 billion [Egyptian] pounds to finance the development of the first line alone.”
The move is the latest in an austerity programme the government has adopted in order to heal the ailing economy. In November 2016, Egypt floated its local pound and slashed state fuel subsidy, measures that secured the country a $12 billion loan from the International Monetary Fund. However, the steps have unleashed rises in prices of different goods and services in the country of nearly 95 million people.
