Light rail fares in Israel jump 33.3%

This light iron railway in Jerusalem, Will Aib, jumped by 3.3 % from 6 to 8 NIS. This step was taken to finance moderation in the high public transport prices, which was supposed to enter into force two years ago.

Prices were scheduled to increase in July 2024. This was after public transportation prices were supposed to increase by 12 % in July 2023 due to the increase in inputs, and the ministries of financing and transportation were looking for a source of financing to alleviate the increase. According to the middle solution, one of the sources of financing for this support was to increase the prices of light railways by NIS 2. Initially, the Ministry of Transport denied that there is any such agreement, but the price committee – which also includes representatives from the Ministry of Transport – is over.

However, since July, the guidelines provided to light railway operators were confusing, and were not ready to increase prices until the problem was resolved. The delay resulted in 60 million NIS flow to state treasures.

At the same time, as part of the latest budget agreement between the ministries of finance and transportation, bus prices will increase by 33.3 % from NIS 6 Shekels to NIS 8, and accordingly, monthly travel subscriptions in all public transportation, according to the state budget for 2025, which has not been passed yet. In addition to the increase in public prices, discounts will also be applied to the appointed population, such as the population in the areas that, according to the Central Bureau of Statistics, were defined as the social and economic status 1-5 (out of 10), and free travel will be provided to citizens over the age of 65 (for the age of 75).

The passenger pays 15 % of the flight cost

Public transportation in Israel is supported annually by about 14 billion New, and the passenger who buys a ticket is paid about 15 % of the cost of the trip, while the state pays about 85 %, which is a high number for the Western world.

The support budget has jumped four times in the past decade, among other things as a result of the money received from the passengers that have eroded over the years. Support increased, while total revenues decreased from prices. Consequently, passengers today pay 2.7 NIS per trip compared to NIS 8 in 2004, according to 2023 prices.

It was published by Globes, Israel Business News – En.globes.co.il – on February 25, 2025.

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