The public transport subsidy included in the 2027 National General Budget bill is expected to rise 35%, reaching approximately US$74 million. For César Ruiz Díaz, president of the Center of Metropolitan Area Transport Entrepreneurs (Cetrapam), the increase reflects higher operating costs and a political decision by the state.
“The increase is happening for two reasons: rising transport costs and a political decision, not a business decision,” Ruiz Díaz said. He said the continuation of the subsidy depends on the government and warned that keeping the fare frozen increases pressure on the Economy Ministry’s budget.
Current fares are 6,801 guaraníes for differentiated service and 5,351 guaraníes for conventional service. According to the business leader, however, the figures used to calculate the technical fare—which combines the portion paid by passengers and state compensation—have been outdated for nine months.
Ruiz Díaz said subsidy payments are up to date, but are calculated using an old fare. In practice, this means the state transfers funds based on costs from before those currently faced by companies operating in the Metropolitan Area of Asunción.
The Cetrapam president also called for an urgent review of the methodology. The sector uses a Brazilian fare model as a reference which, he said, has not been updated for more than a decade. The organization wants the calculation to incorporate changes in operating costs and road infrastructure conditions.
“Potholes in the streets are also part of the cost because they damage buses,” Ruiz Díaz said, calling for this factor to be considered in the fare structure and for responsibility for the deterioration of the roads to be established.
For passengers, the higher subsidy could prevent an immediate fare increase, but it shifts a larger share of the cost to the public budget. Without an update to the technical fare, the difference between the price paid by users and the service’s actual cost is likely to continue being covered by the state.