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Rail News: Passenger Rail
10/7/2010
Rail News: Passenger Rail
Utah Transit Authority to drop fuel surcharge next month
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On Nov. 1, the Utah Transit Authority (UTA) plans to eliminate a fuel surcharge that was added to rail and bus fares in August because of rising diesel prices in the second quarter.
UTA implements a fuel surcharge when the U.S. Department of Energy reports an average retail price of diesel surpassing $3 per gallon. In the second quarter, the average price reached $3.08 per gallon.
But in the third quarter, the average price dropped to $2.98 per gallon. So, UTA “initiated the process to remove the fuel surcharge Nov. 1,” said General Manager Mike Allegra in a prepared statement. The surcharge will be removed from TRAX light-rail, FrontRunner commuter-rail and bus fares.
The agency’s board adopted a fuel surcharge policy in 2008 to “protect UTA's budgets without implementing a permanent fare increase," said Allegra.
UTA implements a fuel surcharge when the U.S. Department of Energy reports an average retail price of diesel surpassing $3 per gallon. In the second quarter, the average price reached $3.08 per gallon.
But in the third quarter, the average price dropped to $2.98 per gallon. So, UTA “initiated the process to remove the fuel surcharge Nov. 1,” said General Manager Mike Allegra in a prepared statement. The surcharge will be removed from TRAX light-rail, FrontRunner commuter-rail and bus fares.
The agency’s board adopted a fuel surcharge policy in 2008 to “protect UTA's budgets without implementing a permanent fare increase," said Allegra.
