Can the subway fare increase again?

The recent transfer of responsibility for approving metro fares and service charges from the Tariff Council to the Ministry of Digital Development and Transport has stirred questions and apprehensions among the citizens of Azerbaijan. Under the new framework, the Ministry has been tasked with approving these tariffs within a six-month timeframe, while also being instructed to consider proposals from the Ministries of Economy and Finance and keep the President informed.

On November 1, Hidayat Mammadov, Deputy Chairman of Baku Metro CJSC, disclosed that the cost price of transporting a single passenger in 2022 amounted to 68 kopecks. However, in 2023, the tariffs underwent revision, with the price of a single trip being raised to 40 kopecks. This marked a shift from the 2018 estimate of passenger transportation costs, which stood at 51 kopecks and subsequently decreased to 50 kopecks in 2019, with fares at the time being 30 kopecks. The advent of the COVID-19 pandemic and associated restrictions had a profound adverse impact on passenger transportation, traditionally the primary revenue source for the Metro during 2020-2021.

In light of these changes, social media platforms have been inundated with queries regarding the prospect of future increases in subway fares. It is worth noting that in February of the current year, subway fares in Azerbaijan were raised from 30 to 40 kopecks, a move that garnered significant public attention.

Efforts to obtain a response from the Ministry of Digital Development and Transport were met with limited success. However, Vahid Akhmedov, a member of the Committee on Economic Policy, Industry, and Entrepreneurship of the Milli Majlis, expressed his point of view in an interview with Turan, emphasizing the importance of considering the social status of the population, regardless of which organization holds sway over the pricing mechanism. Akhmedov acknowledged the impact of inflation and substantial price increases but expressed doubt about an imminent tariff hike. He pointed to ongoing subsidies from the state budget to support the Baku Metro and voiced support for organizations striving for increased self-sufficiency over the long term.

Economist Natig Jafarli in an interview with Radio Azadlig, presented a contrasting viewpoint, suggesting that the Ministry now possessed the means to expedite and implement price increases relatively effortlessly. Jafarli raised questions concerning the Metro's cost calculations, highlighting the opacity and ambiguity in their methodology. He drew attention to pricing discrepancies, pondering how the same 68 kopeck cost could apply to trips spanning just two stations or ten stations, even without considering the duration of a passenger's subway usage.

Jafarli further advocated for a transition in Azerbaijan towards a payment system that factors in the time spent by passengers on the subway. Such a system, akin to those adopted in Europe, offers various ticket options, including one-hour, three-hour, monthly, and 6-12-month subscriptions tailored for students and pensioners, promoting savings for long-term commitments.

Despite efforts to engage with Baku Metro to scrutinize cost calculations and explore other ideas outlined in the article, these endeavors proved unfruitful, leaving numerous queries unanswered in the minds of the Azerbaijani public.