A-G: Need for a long-term solution
16 June, 2019, 10:40 am
BUS operators were told that fuel costs could not be the only determinant in their quest for a fare increase.
The issue was highlighted by Attorney-General and Economy Minister Aiyaz Sayed-Khaiyum during the Fiji Bus Operators Association general meeting at the Novotel convention centre, Lami, yesterday.
“Once this bus fare issue is resolved, that is not necessarily the answer to all your problems,” he said.
“We need to understand, OK, if you are saying a bus fare increase, what will happen the next time when the price of fuel goes up 10 times more, what mechanism will we put in place?”
Mr Sayed-Khaiyum questioned the bus operators on how bus fares should be reviewed and said a long-term solution had to be drawn up.
“Are you simply going to respond to fuel price changes because I am sure that is not your only cost, your cost is also labour.
“Your cost is also the price of fuel, price of lubricants, price of tyres maybe you want to have a factor cost of those who may be driving in rural areas.
“Have you thought about that, do you have a sophisticated approach to pricing? I suggest you have not thought about that, you only thought about the price of fuel.”
The A-G informed bus operators that in order to get a favourable response, the association had to have a clearly defined cost structure to enable the Fijian Competition and Consumer Commission assist them in assessing bus fares.