By the end of April, the tariff of the fare for public transportation of Israel has changed. The fare for a journey increased from NIS 6 to 8, and the price of monthly paths arise accordingly. Along with the increase in fares, the Ministry of Transport launches the second round of “Transport Justice to Socio-Economic 1-5 (from ten) by the discounts in the central rural areas of groups 1-5, to people who are under 26, and to demobilize soldiers.
Through these discounts, the Ministry of Transport has been able to deal with political demands of Haredi parties, for public discounts and in Haredi Setsions. Many Arabic residents benefit from reform.
Amid public criticism of the rise in fares for a service that remains sub-standard, the Ministry of Transport Consistently claimed that 80% of Israel Citizens came within the scope of the reform and could be the discounted fares, with the result that for the discounted fares, with the result that for the discounted fares, with the result that for the discounted fares, with the result that for them traveling to the contravel.
This claim can be tested through the consumer price index published by the central Bureau of Statistics. The most recent reading index, for May, almost no one was found in the midst of the war with Iran. It shows, however, that the increase in fare is certainly having an effect, because the public transport item raises 9.8% in that month.
This raise is amazing, as only one thing has grown over 3% in May: fresh fruit at 3.9%, and chocolate and chocolate also at 3.9%. The total transportation and communication category actually falls 2.4%, but within that category, as mentioned, the public thing is very high.
Service, not price
However, even if public transport price appears to rise, it is not enough to see if fare reform is a negative or positive step. On one side, expanding the cost of living for anyone who depends on public transport. On the other hand, government officials and transport experts claim that, as opposed to the basic economic economic, which is a lower public price, but to serve and reliable. To improve service and reliable, price must be increased.
The Ministry of Finance for many years wants to raise the transport fare, and it’s found now a chance to make it possible. Public transport trips are fully subsidized by the state, and the amount will grow from year to year. It jumped four times over the last decade, in a few 14 billion. At the same time, income from passengers has declined for years. In 2023, it averaged NIS 2.7 per trip, comparing NIS 8 in 2004.
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The increased subsidy of some extent to offset income, but does not lead to further investment in public transport in a way that is available. Before the hike of the NIS 8 fare, the state subsidy amounts to about 90% of the cost of a journey. The Ministry of Transport believes that if that proportion can be reduced, it is possible to invest in the service.
In other OECD countries, fares are higher, and the state subsidy is less than Israel. In these countries, not only bus services are more frequent, but infrastructure is built that provides public transportation priority, such as bus roads and bus roads and train paths.
For Israel, all these things are late. The state does not spend more than NIS 400 million per year in public transport paths, while the five-year plan for them is broken by NIS 6 billion.
The Ministry of Transport says response, “The reform should be recognized from the consumer price index. Patients have patients with patients with patients with patients with employers.
Published in Globes, Israel News in News – en.globes.co.il – On July 2, 2025.
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