Estimating impact of transport fuel price increase on passenger tariff fares

March 9th, 2012 No Comments   Posted in public transport fare

Estimating impact of transport fuel price increase on passenger tariff fares

It is possible to develop a business model for each mode of transport and determine the fare (Peso per passenger km) that will allow the public transport investor a fair return on his investment given his vehicle size/capacity (passengers per trip), capacity factor (% seats occupied), travel distance per round trip, time for a round trip (hours per round trip), number of trips in a day (week days and week ends), number of operating days per year, fuel¬†mileage¬†(km per liter), cost of fuel (Pesos per liter), fixed operating costs (boundary, permits, fees, licenses), variable maintenance costs other than fuel (tire, radiator, brake, engine, suspension, body works), other variable operating costs (toll fees per round trip). More »