RISING global fuel prices have forced a 22.5 per cent increase in bus fares across Fiji, but the Coalition Government says ordinary commuters will be protected from paying higher costs through a new monthly subsidy package.
Announcing the interim fare adjustment yesterday, Fijian Competition and Consumer Commission chief executive officer Senikavika Jiuta said the increase would take effect from May 26 following a review of operational pressures faced by bus operators.
“To put this into perspective for commuters, the current Stage 1 bus fare of $1.02 will increase to approximately $1.25, an increase of $0.23,” she said.
Ms Jiuta said passengers travelling longer distances would see even larger increases.
“For commuters travelling on Stage 46 routes, the current fare of $27.16 will increase to approximately $33.27, an increase of approximately $6,” she said.
She said the decision was made after a careful assessment of rising fuel costs and the broader economic situation.
“FCCC recognised that these adjustments will place added pressure on many households and businesses. However, these decisions were not taken lightly.
“Fiji, like many other small island developing states, continues to face the effects of global economic uncertainty, rising international fuel prices, and ongoing geopolitical tensions beyond our shores.”
In response, Minister for Finance Esrom Immanuel announced the Government would fully absorb the fare increase to prevent commuters from paying extra.
“Following Cabinet’s approval, I wish to announce that the Government will also fully absorb the 22.5 per cent increase in bus fares announced by FCCC on top of the existing 10 per cent bus fare subsidy that existed before,” he said.
Mr Immanuel said approximately 350,000 Fijians who rely on bus transport daily would continue paying current fares despite the increase.
“None of the approximately 350,000 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 fares, the Government will fully absorb the 22.5 per cent increase in bus fare costs at an additional fiscal cost of $2million per month.”
He said the Government would also assist rural transport providers affected by rising fuel prices.
“For all rural service licensed providers or RSL and boat operators providing transportation to students, Government will also support with additional vouchers to cater to the increase in their fuel cost.”
Mr Immanuel said additional support measures would be announced in the next national budget.
“As we announce the new budget on the 26th of next month, we will announce more support measures to protect our people, to protect our businesses and the economy.”
