Despite the economic crisis, harsh public criticism, and the continuing decline in gas prices, the cost of public transportation is slated to rise this January.
The inter-ministry pricing committee approved on Sunday the rise in public transportation fares that was decided on by the cabinet in August.
As part of a compromise reached between the Finance Ministry and the Transportation Ministry an 8% increase was approved, instead of the 12% increase the Finance Ministry initially demanded.
Transportation Ministry officials plan to fight the decision, and Ynet learned that Transportation Minister Shaul Mofaz and Ministry Director General Gideon Siterman are scheduled to meet on Sunday to discuss ways to foil the increase.
Sources close to Mofaz told Ynet the minister had no intention of signing the order to put the decision into effect.
Mofaz's objection stems from the fact that such a rise in prices is against government policy, which claims to encourage the use of public transport.
The ministry also pointed out that transportation rates were already increased in July and there was no reason to raise them again in such a short period of time.
Meanwhile, the Finance Ministry explained the increase was a result of the high rise in operational costs of the public transportation system that receives a yearly subsidized budget of some NIS 2.5 billion ($634 million).
The rise was also due to a 3% increase in the Consumer Price Index, the Finance Ministry said.
_a.jpg "Photo: Yaron Brener")
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