THERE was a mixed reaction from the transportation industry following an increase in official fuel prices last month.

A local pilgrimage tour operator said her business was doing well despite the price hike, which doubled the cost of fuel sold to long-distance transportation companies from K750 to K1500 a gallon.

“Business was better last year, but we are tying to cope with the situation and keep the same level of business this year,” said Daw Naing Naing, the owner of Mya Thet Chel pilgrimage tour company. “We are quite happy with the result.”
To maintain her business she has had to introduce better services and arrangements.

“Instead of organising many trips, this year I am focusing on fewer trips and making every trip special by giving extra care to the passengers, like providing snacks and soft drinks on the bus,” she said. “We also carry extra food provisions to be able to cater to children and old people in case their car breaks down far from a restaurant.”

She said most of her customers do not mind paying a little more for the extra care.

“We have not had any problems increasing the price. The customers understand the problems we are facing. All they asked for in return is to have a comfortable and memorable trip,” Daw Naing Naing said.

However, some businesses are having more difficult adjusting to the increasing costs of long-distance transportation.

One Yangon-based company that runs a monthly three-day, two-night package tour to Ngwe Saung Beach has had trouble offering trip for K40,000 as it has in the past.

“Since fuel prices went up I have found it very hard to offer the trip at the same price,” a company representative said.

She said she was considering raising the price but had not yet calculated how much the increase should be.

Meanwhile, long-distance trucking companies have had less trouble adjusting to the rising costs of transportation than express bus and pilgrimage tour operators.

U Kyaw Ko Ko Latt, of the Ten Wheel cargo company, welcomed the government’s latest fuel policy, which has doubled the fuel ration to 100 gallons for long-distance cargo truck operators but has raised the price to K1500 a gallon for both diesel and petrol.

“We welcome the move because we do not need to rely on the black market for fuel,” U Kyaw Ko Ko Latt said.