The National Transportation Authority has announced changes to public transportation fares in Ulaanbaatar, effective January 1, 2025. Under the new regulations, bus fares will double from 500 to 1,000 tugriks per ride, with updated travel limits and payment systems also introduced.
New Fare Structure
Currently, bus passengers pay 500 tugriks per ride, with free transfers allowed within 30 minutes. Starting next year, passengers will pay 1,000 tugriks per ride, with a cap of four trips per day. Any additional trips beyond the daily limit will incur another 1,000-tugrik fee.
Key changes include:
- Students: The amended Law on Education invalidates discounted fares for students, meaning they will now pay the full 1,000 tugriks per ride.
- Seniors: Regardless of nationality, senior citizens will continue to travel free of charge.
- Children: Young children will still pay a discounted fare of 200 tugriks.
Why the Increase?
D. Otgonjargal, Head of the Public Transport Policy Department, explained the rationale for the increase, noting that the 500-tugrik fare has remained unchanged since 2014. “It is planned to increase the fare to 1,000 tugriks after 10 years. According to a 2021 study, the cost of transporting one passenger by public transport is 1,300 tugriks,” Otgonjargal stated.
To address the financial gap, the capital city budget has been subsidizing bus companies to the tune of 350 billion tugriks annually. The fare hike aims to reduce reliance on government subsidies and better reflect the actual cost of public transport services.
Upgraded Payment Systems
To improve convenience, public transport vehicles in Ulaanbaatar are now equipped with Ulaanbaatar smart card readers and readers for commercial bank cards. Additionally, electronic payment platforms such as QPay and SocialPay are being integrated into the system.
Impact on the Public
The fare adjustment reflects broader efforts to enhance public transportation services and ensure financial sustainability. While the new pricing addresses longstanding cost discrepancies, it also places additional financial responsibilities on students and frequent travelers.
The move marks a significant change in Ulaanbaatar’s public transport system and is expected to affect both the city’s budget and the daily lives of its residents.
