Public transportation costs are rising sharply in Israel - Here's what we know

As reported by Kann News, public transportation users in Israel are facing a significant fare increase, with immediate effect.The Ministry of Transportation has implemented a new pricing structure that will see costs rise across various modes of public transit.

Key Changes:

1. Single ride fares in payment apps have increased to six shekels for both bus and light rail journeys.

2. From July 1st: Fares for all other payment methods will also rise to six shekels.

3. From 2025: Light rail fares in Jerusalem and Tel Aviv will further increase to eight shekels, effective January 1, 2025.

This price hike, first reported by "Evening News" on Kan 11 about a month ago, has been implemented without recent official statements from the Ministry of Transportation.

Public transportation fare revisions typically occur biannually, in January and July, on an "automatic pilot" basis. The current increase represents a 10% rise for bus fares.

Looking ahead to January 2025, light rail fares in Tel Aviv and Jerusalem — classified as "premium products" — will see a substantial 45% increase.

Sources indicate that the Ministry of Transportation attempted negotiations with the Ministry of Finance to mitigate the impact of these increases. Despite these efforts, a minimum 10% rise will still take effect.

Many sectors of the economy have seen significant cost increases, with some analysts suggesting that the ongoing Israel-Gaza conflict has played a role in driving up costs. The war has disrupted supply chains, increased defense spending, and created economic uncertainty, all of which can contribute to inflationary pressures.