JUTC fare reduction to cost Gov't $1B
Published:Tuesday | November 21, 2023 | 5:42 PM
Finance and the Public Service Minister Dr Nigel Clarke says the Government will provide the Jamaica Urban Transit Company (JUTC) with the resources to finance the announced reductions in passenger fares for 24 months.
In a statement to Parliament this afternoon, Clarke outlined a temporary reduction in the regular fares of the JUTC from $100 to $70 and for children from $30 to $25.
The fares for pensioners will also be reduced from $40 to $30.
In April 2024, regular fares will again be decreased to $50, children's fares to $20 and pensioners to $25.
"It is expected that for the period January to March of this fiscal year this measure will cost approximately $200 million and for the full year period April 1, 2024 to March 31, 2025, this measure will cost $800 million," Clarke said.
Clarke said that changes in the JUTC fares are part of measures to dampen the impact of the fare hike in October on the overall inflation rate.
Last month, the Government announced a 19 per cent increase in public passenger fares, excluding JUTC, and the Montego Bay Metro.
The increase took effect on October 15.
A further 16 per cent increase was also announced to take effect in April 2024.
Clarke said that the measures announced this afternoon were a follow-up to a commitment by the transport minister to mitigate the impact of the fare increase on consumers.
The finance minister told his parliamentary colleagues the Government was advised by the Bank of Jamaica that as result of the adjustments in PPV fares, the central bank was expecting a reversal of the downward trend in annual inflation starting in November 2023.
“Given that the cost of transportation services comprises a notable portion of the Consumer Price Index basket, the Bank of Jamaica further advises that the announced increases in taxi fares, cumulatively, would add approximately two percentage points to inflation if not balanced by countervailing measures,” he said.
However, Opposition spokesman on transport Mikael Phillips argued that with JUTC providing about a quarter of the seats in the Kingston Metropolitan Transport Region, the reduced fares from the state-owned bus company will have very little effect on the majority of commuters who take private taxis and buses.
Follow The Gleaner on X and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.