Consumer Council of Fiji questions calls for bus fare increase

The Consumer Council of Fiji has questioned calls for bus fare increase.

Council Executive Chairman, Raman Dahia is urging bus companies to submit audited financial reports to relevant authorities before any request for a bus fare increase is entertained.

He says the Council notes the calls from the Fiji Bus Operators Association for an increase in bus fares after price increases in fuel for the third quarter in a row.

Dahia says since the bus fare review in 2009, there have been 23 price decreases and 30 price increases in the cost of diesel per litre recorded to date.

Dahia says these fuel prices are still lower than prices experienced before the bus fare review was in 2009 and are still lower than the highest diesel price experienced post bus fare review.

He says if consecutive quarterly increases in the price of fuel are to be matched by increases in bus fares then logic would dictate that the decreases in the price of fuel should also be followed by decreases in bus fares.

He says the Council is aware that the bus industry is providing a vital service in transporting the consumers in Fiji and therefore its survival must be ensured.

The Council also acknowledges that some bus companies have made the capital investment of upgrading their fleets for improved service delivery and have provided concessions under Government social policies.

Dahia says in light of the concessions given, together with high fares enjoyed over reducing fuel prices for prolonged periods, the Consumer Council believes that bus companies must reveal their audited accounts to the Fijian Competition and Consumer Commission and the LTA to prove that an increase is warranted.

He stressed that the fuel price increases in three consecutive quarters cannot be the basis for calling for an increase in bus fares, these increases must be backed by hard figures and in the absence of these figures as it is difficult to justify any increase.

Meanwhile, the Fijian Competition and Consumer Commission had earlier stated that Fiji is directly affected by the world market prices for both refined oils and LPG and any changes to the world market prices will be reflected in Fuel and LPG prices in Fiji.