Minister of Transport Daryl Vaz says he does not believe the temporary fare decrease for the Jamaica Urban Transit Company (JUTC) will have a significant impact on public passenger vehicle (PPV) operators.

Vaz’s remarks come in the wake of worries that the recent adjustment may adversely affect PPV operators. This concern arises particularly because PPV operators recently received a 19 per cent fare hike for taxis and buses, sparking public outcry. Meanwhile, fares for the government-operated bus company decreased, enhancing the appeal of JUTC buses for commuters.

“Will it have an impact? Yes. How huge an impact? I think it will be minimised because of [the JUTC] current fleet of buses. I think that when we increase the fleet, obviously persons will have more access to the buses, but I’m not seeing where it will be very impactful at this particular time,” said Vaz.

The minister of finance announced that regular passenger fares for JUTC will move from $100 to $70 and for pensioners from $40 to $30, effective January 1, 2024. Student fares will also move from $30 to $25.

A further reduction in April 2024 will move regular fares from $70 to $50. Student fares will move from $25 to $20 and pensioners from $40 to $30.

Vaz said the move was made in the best interest of the public. However, he will engage in discussions with PPV operators to hear their concerns.

“The Government has to act in the best interest of the people of Jamaica and not a particular sector. So, in this case, [PPV operators] won on the one hand, and they lost a little on the other hand. They got a well-deserved long overdue increase, a great economic impact, and we have an agreement in relation to the 16 per cent for April next year. So, it’s all good,” said the transport minister.

A 19 per cent increase in taxi and bus fares took effect on October 15, 2023. An additional 16 per cent increase will take effect in April 2024.

Finance Minister Nigel Clarke said the reduction in the JUTC fares is to dampen the impact of the announced increases for PPV on the overall inflation rate. The temporary adjustments in JUTC fares will run for up to 24 months, which will cost the Government J$1 billion.

JUTC is set to acquire 300 new buses over the next three to four years.