State explains bus, taxi fare increase
6-Aug-2009 09:52 AM

THE decision to increase the bus and taxi fares took long deliberations that involved Government, the Land Transport Authority (LTA) and the bus and taxi industries, a statement issued by Government said yesterday.

The statement read that the decision was not an easy one for government to make, given that Government recognises the difficult economic times we are going through and also, in recognising that the two industries, the busses and taxi industries are the main providers for basic, affordable transportation, particularly for the majority of Fiji’s population who do not have the luxury of owning private vehicles.

Government had to consider various factors apart from the devaluation of the Fiji dollar, are the recent increases in fuel costs which from March of this year, according to a press statement issued by the Government yesterday.

“This year has seen almost five price hikes from $1.57 per litre on the 3rd of march 2009, for unleaded benzene, to the latest increase of $2.08 per litre on the 20th of July, 2009.  

“Likewise for diesel, on the 22nd of April 2009, an increase saw prices going up to $1.27, then to $1.43 per litre then to $1.58 per litre on the 17th of June, 2009. The latest increase on the 20th of July, 2009 now sees diesel prices sitting at $1.73 per litre.”

In addition, government has also acknowledged that prices for spare parts for both taxis and busses have increased significantly.

“An example is for busses, with tyre’s increasing from example, Fiji Bandag Prime Well tyre of 900x20 which at pre-devaluation used to cost $492, is now selling at $865, and a Prime Well 1000x20 tyre which used to sell at $573.00 prior to devaluation is now selling at $991.00. The Bridgestone tyres from Asco Motors model 1000x20 which used to sell at $528.36 pre-devaluation is now selling at $835.38,” the statement read.

The statement highlighted that in light of all the fuel hikes being effected in 2008, Government used to assist the bus industry in the form of subsidies paid to the bus operators upon satisfactory vetting of their monthly income by the Fiji Islands Revenue and Customs Authority. This has been removed by Government effective from December 31, 2008.

In addition, Government has been seriously concerned with the recent increase in bus incidents and has plans to come down hard on bus operators regarding safety measures and the life span of buses.

However, Government also realises that the busses in their current states cannot be expected to conform to the changes unless they are able to meet the costs.

“These issues have contributed to Government’s decision that the busses and taxi industries deserve some increase in order for them to have some relief from the recent fuel hikes and the devaluation of the dollar, and to allow them to improve their current fleets.

“These increases have been granted with certain conditions which will include the ongoing trainings which have begun, for both bus and taxi operators to ensure their drivers are taught on driver behavior and safety aspects as well as general upkeep and maintenance of their busses or vehicles.”

The Fiji Bus Operators requested for a 20 per cent increase in fare across the board, but was granted 13 per cent. For taxi’s, Government reinstated the taxi flag falls which it removed earlier this year as fuel prices plummeted for a while. This now sees flag falls increasing from $1 to $1.50 for day hiring and $2 for night hiring from the current $1.50.
 
Waiting charges will now be 10cents for every one minute of waiting. This now applies to those passengers only who require taxi’s to wait for them at some point during the journey for example, if they choose to buy something quickly from a shop or pick something from somewhere whilst enroute to their destination.
  
Government would like to assure the general public that the current increases is expected to see a gradual improvement in the condition of busses and their services to not only ensure traveling in comfort, but to most importantly, ensure safety of the traveling public.