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So Fuel prices have dropped why are rail and bus prices not dropped?

linkinpark875linkinpark875 Posts: 29,701
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in General Discussion #1
I heard the airlines will have to drop costs so why are rail prices not reduced I know they do regular yearly rises but more so the bus prices. They always stick a sign up saying sorry due to increasing fuel costs prices will rise. When fuel was getting to the price it was now fares were about 40-50p cheaper so why do they still charge so much?

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  • TheTruth1983TheTruth1983 Posts: 13,462
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    #2
    Speaking for Translink NI, the company buys it's fuel 18 months in advance so they have not yet experienced the fall in fuel prices. As well as that, they have kept fares frozen for several years while their expenses have not been frozen.
  • tealadytealady Posts: 26,266
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    #3
    Because it is only a small component in their costs compared with infrastructure, investment, salaries. A lot of the railways are electrified too.
    To some extent they will have bought forward and depending on how the deal was structured may not allow any change.
  • TrollHunterTrollHunter Posts: 12,496
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    #4
    linkinpark875 wrote: »
    I heard the airlines will have to drop costs so why are rail prices not reduced I know they do regular yearly rises but more so the bus prices. They always stick a sign up saying sorry due to increasing fuel costs prices will rise. When fuel was getting to the price it was now fares were about 40-50p cheaper so why do they still charge so much?

    You know the 3rd rail on a railway line, the one that you were always told not to stand on because you'd get electrocuted, well that's what powers the trains. That's why when the cost of oil goes down, train prices don't.
  • newyorkcitygirlnewyorkcitygirl Posts: 558
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    #5
    TrollHunter wrote: »
    You know the 3rd rail on a railway line, the one that you were always told not to stand on because you'd get electrocuted, well that's what powers the trains. That's why when the cost of oil goes down, train prices don't.

    Apart from diesel only routes.
  • lemoncurdlemoncurd Posts: 57,778
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    #6
    TrollHunter wrote: »
    You know the 3rd rail on a railway line, the one that you were always told not to stand on because you'd get electrocuted, well that's what powers the trains. That's why when the cost of oil goes down, train prices don't.

    That's only the SE, a few local metros and some mainlines though and whilst they are the busiest routes, 40% of train journeys remain diesel hauled.
    Oil prices also affect electricity prices (seeing as most UK electricity is from oil-filed stations). As an earlier poster said though, contracts for oil are often negotiated up to a year in advance (sometimes several years), so the trickle-down effect on electricity won't happen for some time.
  • linkinpark875linkinpark875 Posts: 29,701
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    #7
    I'm sure when they dropped them before it was just for day tickets or something not sure why they feel they need to charge so much for fares.
  • Smiley433Smiley433 Posts: 7,894
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    #8
    lemoncurd wrote: »
    seeing as most UK electricity is from oil-filed stations

    According to this, coal fired power stations generate about a third of the required electricity and oil-fired stations are not in constant use (see the dials top right of the page for an explanation).
  • TrollHunterTrollHunter Posts: 12,496
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    #9
    lemoncurd wrote: »
    That's only the SE, a few local metros and some mainlines though and whilst they are the busiest routes, 40% of train journeys remain diesel hauled.
    Oil prices also affect electricity prices (seeing as most UK electricity is from oil-filed stations). As an earlier poster said though, contracts for oil are often negotiated up to a year in advance (sometimes several years), so the trickle-down effect on electricity won't happen for some time.

    You're kidding me. Oop north, trains are powered by oil? I thought it was still steam-powered. You live and you learn.
  • AndrueAndrue Posts: 23,363
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    #10
    lemoncurd wrote: »
    That's only the SE, a few local metros and some mainlines though and whilst they are the busiest routes, 40% of train journeys remain diesel hauled.
    Oil prices also affect electricity prices (seeing as most UK electricity is from oil-filed stations). As an earlier poster said though, contracts for oil are often negotiated up to a year in advance (sometimes several years), so the trickle-down effect on electricity won't happen for some time.
    The Chiltern Mainline between London and Birmingham is not electrified either.
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