Government will fully absorb the newly approved 22.5 per cent bus fare increase to shield commuters from additional costs during the ongoing global fuel crisis, Finance Minister Esrom Immanuel announced this afternoon.
Speaking at a press conference, Mr Immanuel said Fiji was facing mounting pressure from rising global fuel prices, which were affecting critical service providers including Energy Fiji Limited, water services, bus operators and freight-related sectors.
He warned that disruptions to essential services such as electricity and public transport would have severe consequences for businesses, households, jobs, public finances and national security.
“Such disruption has to be avoided at any cost,” he said.
Mr Immanuel confirmed that the Fijian Competition and Consumer Commission had approved a 22.5 per cent increase in bus fares and an interim electricity fuel surcharge adjustment of 5.91 cents per kilowatt hour.
He said the electricity adjustment was necessary to help maintain supply security and continuity of bus services during the crisis.
However, he stressed that Government remained committed to protecting ordinary Fijians and businesses from the full impact of the increases.
“None of the approximately 105,000 Fijians who rely on bus transport, including students using blue and yellow cards as well as adults using red cards, will pay an additional bus fare despite the increase in rates,” Mr Immanuel said.
Government will absorb the fare increase at an estimated additional fiscal cost of $2 million per month, on top of the existing 10 per cent bus fare subsidy already in place before the crisis.
Mr Immanuel said rural service licence providers and boat operators transporting students would also receive additional support to offset higher fuel costs.
The Ministry of Education will work with operators to ensure continued transportation services for students and proper cost recovery for providers.
