Come August 1, Malaysian have to dig deeper into their pockets as transportation fares have been increased to about 30 percent.The government announced yesterday there will be an increase fares for taxis, rental cars and express, stage and school buses beginning next month.

The starting fare for taxis is now RM3, up from RM2, and passengers will be charged 10 sen for every 115 metres instead of 150 metres previously.

For taxis caught in traffic, the fares will be RM3 for the first three minutes and 10 sen for every 21 seconds subsequently, compared to the 45 seconds previously.

Express bus fares will be raised to two sen per kilometer while for stage buses in the Klang Valley, the increase will be between 25 sen to 70 sen according to the zones.

Meanwhile, school bus fares in urban areas will also be increased from RM21.10 to RM27.43 for the first kilometer and from RM1.55 to RM2.02 for every subsequent kilometer.

For those operating in rural areas, the increase will be from RM15.85 to RM20.61 for every kilometre.

The hike has drawn mixed reactions from consumer groups, taxi and bus operators alike.

Here is what they have to say:

jacob george cassa 240408 01 Dr Jacob George (Consumers' Association of Subang and Shah Alam, Selangor): The Prime Minister announced goodies that benefited the rich not the poor last week.This announcement only adds to the burden and hardship of people in the lower income group.

We don't have a comprehensive transport system in the country and most Malaysians do not have a disposable income because of rising cost of all other consumer goods.

It will create a snowballing effect. It is not that we are being unfair to the transportation providers, but there has to be a formula, they cannot just pluck out figures from the air.

They have also announced a rise in electricity tariff - how is fare hike fair to the poor?

They saying that operating and maintenance costs are going up but government is not putting on its thinking caps. Instead of a rise, they can give subsidies and assist the parties. Instead they are taking an easy way out.

N Marimuthu (Federation of Malaysian Consumer Associations): Every other sector has had a raise and the transport sector has been waiting for more than four years now.

These are essential sectors... if drivers can't earn a living, who wants to be taxi driver. In most areas in Petaling Jaya, it is so difficult to get a taxi.

People are abandoning the profession. In certain sectors if they are not paid well then no one wants do it.

Abdul Razak (LCCT Taxi Drivers Welfare Assocition president): The increase in fare by the government is unnecessary. Taxi drivers work under tight rules and conditions.

The better long term solution would be to grant us individual taxi permits instead of our permits belonging to other companies. The increase doesn't mean anything to us, as the companies always pressure us.

lcct taxi drivers protest 050209 02 Some of these companies are syndicates and they control taxi drivers, so if given a choice, we would rather not have a price increase..

Mohd Ashfar Ali ( Pan Malaysian Bus Operators Association): School buses are actually getting a fair hike as children need this service to go to schools.

However, the same cannot be said for stage buses. The 30 percent surcharge had already been implemented since Sept 15, 2008.

It is nothing new but it burdens people in the lower income group, the people who actually use our services. We don't want anymore fare increases but we want financial assistance.

The government can even do away with the diesel subsidies and instead give monthly grants based on per kilometre operated by each bus.