Cabinet defers PPV fare ruling to June 1 as operators press for remaining 16%

Public passenger vehicle (PPV) operators have stepped up pressure over a long-promised fare adjustment the Government has yet to implement, but ministers said on Monday they need another fortnight before Cabinet can rule on the matter, with an answer now targeted for June 1.

Addressing journalists at the Transport Centre in Half-Way-Tree, St Andrew, Transport Minister Daryl Vaz said his ministry would take the issue back to Cabinet later the same day. He told reporters the draft submission was already moving through channels.

"I am happy to say today that the Cabinet draft submission is going to Minister [Fayval] Williams, and this is totally coincidental. This has nothing to do with the meeting this morning; it was a process. We are asking for a little bit more time. We are going to send out that submission today, and in discussions with Minister Williams, she has asked for two weeks before we can bring the submission to Cabinet for a final determination. So it means that that Cabinet submission will go to Cabinet on Monday, June 1," he said.

The briefing came amid warnings that operators could disrupt services on Monday. Vaz linked the slow rollout of the fare rise to wider geopolitical shocks, saying state policy had partly shielded motorists and commuters from steeper fuel bills tied to the United States and Israel's military campaign against Iran.

"We are trying to balance a delicate situation, but whereas you have not gotten the 16 per cent as of right now, you have been cushioned by the policies of the government in relation to how we handle the war and the increases in price. I don't need to say to you what the effect would be on the Jamaican people if we were to use or to move away from the $4.50 ceiling per week and have a tiered approach in terms of the level of increase," Vaz said.

Finance Minister Fayval Williams, who joined the session, cautioned that any approved hike could ripple through the wider economy and might be phased rather than applied in one step.

"We may be asking for it to be done in two charge. I know everybody is expecting an all at one go, but remember, we're all living in Jamaica. We're all experiencing the higher oil prices…. So we're asking for forbearance from everyone, knowing that the government has been subsidising the prices, not been letting through 100 per cent of the increase that Petrojam is bearing.

In 2023, Cabinet signed off on a 35 per cent fare increase for operators. To date, only the first tranche of 19 per cent has taken effect. The balance of 16 per cent was due to start in April 2024.