THREE authorised companies began installing fare meters in Yangon taxis on January 3, prioritising vehicles with registration codes beginning with the Myanmar letters ka ka and kha kha, said an official from the Yangon Division Wireless and Traffic Police Force.

“Vehicles whose registration codes start with ka ka and kha kha cannot be converted into private cars because they were imported for the purpose of serving as taxis, so we’re starting the installation process with these vehicles,” said Police Deputy Superintendent Myint Aung.

He said there were more than 2300 such taxis in the Yangon municipal area and the installation process for them was expected to take about two months.
After all the ka ka and kha kha taxies have been equipped with fare meters, the Yangon Division Supervisory Committee Ensuring Smooth and Secure Transport will announce which taxis are next in line for installation, he said.

“We plan to have meters installed in all CNG [compressed natural gas] taxis within six months. Those that have not had meters installed by the end of this period will be forbidden from refuelling at CNG stations and will have their licences suspended,” he said.

“Once the meters are installed drivers must collect fares according to the prices fixed by the committee. If the drivers charge more we will take action against them,” said Police Deputy Superintendent Myint Aung.

He said three companies have been authorised by the committee to install the meters: Aye’s Family Company, Sakura Technical Services Corporation and LYNX Trading.

“With three companies providing installation services we will be able to finish the project more quickly than we anticipated. If necessary, we will authorise more companies,” he said.

U Htin Kyaw Oo, the managing director of LYNX Trading, said the committee has fixed the price of the meters at K200,000.

“Each meter will be sealed to prevent drivers from tampering with the devices to charge more. If the seal on the meter is broken we will not honour the warranty,” he said.

Meanwhile, taxi drivers said it would take some time for passengers and drivers to adjust to the new fare system.

“I think it will be awhile before passengers and drivers can work properly using the meter system,” said taxi driver Ko Htwe Aung.

“Personally, I think the current system of negotiating a price according to the distance before the passenger gets into the taxi works fine. There are no problems. Drivers and passengers agree on a price, and if the passenger is in a hurry we can get them where they want to go as fast as possible,” he said.

Ko Htwe Aung said that with meters, some drivers might be tempted to choose a longer route to the destination to boost the fare, which would create problems between the drivers and passengers.

Another driver, Ko Than Htike, agreed that if fares drop because of the meters, drivers might try to find ways to boost the charges.

While the new meters installed passengers will be charged a base fee of K500 plus K200 for each mile driven and K50 for each minute spent idling. Officials have announced that they will “take action” against drivers who overcharge.

“Once the meters are installed I think some drivers might use two pricing systems, sometimes turning off the meter if passengers want to negotiate a price,” Ko Than Htike said.

“Right now the normal charge from Ahlone township to Sule Pagoda in downtown Yangon is about K1500. After the meters are installed there will be a choice between agreeing to pay that price or relying on the meters,” he said.

He said that when prices are negotiated drivers usually use Strand Road, which is clear of traffic, but with meters they might choose to drive along congested Mahabandoola Road to boost the fare.

“I don’t think drivers will plan to do such things but if the metered fares are too low they might have to in order to survive,” he said. “But if drivers take slower routes it can also cause problems with passengers who want to get to their destinations quickly or who realise the drivers are trying to boost the fare.”

But he said the bottom line for drivers was making enough money to deal with rising prices of fuel, spare parts and commodities in general.

According to test runs by one of the three companies authorised to install the meters, metered fares will be substantially lower than current negotiated fares.
The current negotiated fare from Hledan junction to Yangon International Airport is about K2500 but the metered charge is about K1400.

Ko Thura, an engineer for a foreign oil and gas company who often uses taxis to get around Yangon, said the lower prices would be good for passengers but would also have to be high enough for taxi drivers to survive.

“Lower fares will benefit passengers unless they’re so low that drivers have to be mischievous to earn enough to survive. In that case, we can’t really blame them for taking longer routes or congested roads so they can charge more,” he said.

“The meter system will be very convenient for passengers if the fares set by officials are appropriate for both drivers and passengers. Otherwise there can be problems with breaking the rules,” he said.