Vaz urges taxi operators to hold strain, decision on fare increase expected on June 1

Transport Minister Daryl Vaz says public transport operators awaiting a long-promised 16 per cent fare increase may have to weigh the broader economic realities, warning that any adjustment granted today could be quickly erased by rising fuel costs if government subsidies are removed.

Vaz made the comments today after the Ministry of Transport convened a meeting with taxi operators amid threats of industrial action over the longstanding fare increase request, which has been outstanding for more than two years.

The minister welcomed the fact that there was no disruption to public transportation services today despite concerns that operators could become restive.

“I am very happy that there was no disruption of service this morning, and it shows very clearly that there is trust and understanding between the stakeholders, the ministry, the government, and myself. I would never want that to be affected,” Vaz said.

Taxi operator Bryan, who addressed the minister during the meeting, argued that operators have been squeezed by escalating operating costs, with more than 60 per cent of earnings going towards expenses.

“We have been taking note of the important dates, but most of our operational costs and expenses take away more than 60 per cent of our earnings. Even the very cost of a quart of oil has gone up more than 50 per cent,” Bryan said.

He further noted that while operators continue to await the 16 per cent increase, inflationary pressures may now justify a fresh fare review.

“While we await the 16 per cent for over two years, we have to take into consideration that we are at a period where we should be looking into a new fare request,” Bryan added.

Responding, Vaz said the government has had to balance operators’ demands against efforts to shield Jamaicans from spikes in international oil prices.

“I say that to say these are the things that we are contending with because every decision or action is going to have a reaction. I can say to you without fear of contradiction that if the government did not and does not continue to cushion the international oil price increases to the average Jamaican and consumer, your 16 per cent would be erased in less than one week. That’s the real fact, so just understand that it’s not that we are not doing anything; it is just that we have not granted the outstanding 16 per cent and what would happen if we were to do that, because other decisions and considerations would have to be made.”

Vaz and transport operators are to meet again on June 1, at which point a decision on the fare increase will be made.

“We have two weeks. Let us not pre-empt or prejudge, but let the Ministry of Finance do what they need to do and come up with the best possible scenarios,” he said.

“Based on the submission at the centre of finance, there will be a review of the Cabinet submission and basically we would go the Cabinet for a final determination as it relates to whether or not the figures show that a best case scenario would be for the 16 per cent [to be approved] all at once or a phased approach with a figure to be determined or immediate implementation and a timeline.

“There is a collaboration of transport and the Ministry of Finance to get this matter to a decision on June 1, 2026," Vaz stated

- Tiffany Pryce

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