The Mass Rapid Transit Authority (MRTA) board has approved a fare cut for the MRT's Purple Line so passengers will pay a maximum fare of 20 baht per trip starting on Dec 1.
However, the new fare will be applicable to passengers who pay the fare with credit cards with a contactless payment system only, said MRTA governor Pakapong Sirikantaramas.
He said those who use other cards, such as prepaid cards or a one-day pass, or pay the train fare with cash are not eligible for the reduction.
The 23-kilometre Purple Line runs from Tao Pun to Bang Yai in Nonthaburi, with a total of 16 stations.
The move follows the State Railway of Thailand (SRT) board's decision last week to cap the fare for its 41-km Red Line at 20 baht.
The MRTA and SRT fare cuts are in line with Transport Minister Suriya Jungrungreangkit's policy that a 20-baht fare would be piloted on the Red Line and the Purple Line as a "New Year's present" to the public.
Mr Pakapong said the current fare on the Purple Line is between 14 and 42 baht. There is an average of 56,000 passengers per day, and the new fare rate is expected to boost that number by 17%, or to 66,000 passengers per day, he said.
However, it is estimated the new rate will cost the MRTA 190 million baht per year in lost income, he said.
But the agency will not ask the government for a subsidy, and it will use its revenue from the MRT's Blue Line to offset the financial loss, he said, adding the MRTA earns 350 million baht in revenue sharing from the MRT's Blue Line.
According to Mr Pakapong, the loss in revenue is worth it when considering the economic value of 900 million baht from a reduction of fuel use, travel time, pollution and risk of accidents.
Mr Pakapong said the MRTA board's decision will be submitted to the Transport Ministry for review and then to the cabinet for approval.
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