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10/16/2008



Rail News: Rail Industry Trends

Greater Cleveland RTA signs off on fuel surcharge


The Greater Cleveland Regional Transit Authority (GCRTA) board recently approved a plan to add a 25-cent fuel surcharge to the base fare, raising the ticket price to $2. Scheduled to take effect Oct. 27, the surcharge is expected to generate $4.8 million annually.

Unlike a permanent fare hike, a fuel surcharge can go up or down, depending on diesel costs. Because GCRTA locked in its fuel prices for the next year, the fuel surcharge will not increase until at least Sept. 1, 2009, the agency said.

If the agency secures additional state funding, it might not increase fares. If it doesn't, GCRTA might have to boost fares as often as every three months, depending on its fuel costs, the agency said. If the cost of diesel drops below $3 a gallon, the surcharge would be eliminated; if it rises to between $3 and $4 a gallon, the surcharge would increase to 50 cents. Because the state recently allocated an additional $9 million in funding to GCRTA, the agency reduced this year's fuel surcharge from 50 cents to 25 cents.


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