Gov’t Announces Temporary Reduction in JUTC Fares

• The Government has announced temporary reductions in Jamaica Urban Transit Company (JUTC) fares. This forms part of measures to dampen the impact of the announced increases in public passenger vehicle (PPV) fares on the overall inflation rate. On October 10, 2023, the Government announced a 19% increase in PPV fares (excluding JUTC and the Montego Bay Metro (MBM)), effective October 15, 2023. A further 16% increase was also announced to take effect in April 2024.
• The Central Government is expected to provide the JUTC with the resources to finance the initiative. Minister of Finance and the Public Service, Dr the Hon. Nigel Clarke, made the announcement during a statement to the House of Representatives on Tuesday (November 21).
• He informed that effective January 1, 2024, there will be a reduction in the regular fare from $100 to $70, a decrease in the fare for children from $30 to $25, and for pensioners from $40 to $30. Additionally, effective April 1, 2024, there will be a further reduction in the regular fare from $70 to $50, from $25 to $20 for children while the fare for pensioners will be reduced from $30 to $25.
• “We anticipate that these temporary measures will have a mitigating effect on the impact of the private bus and taxi fare increases on the commuting public. I wish to reiterate that these are temporary measures designed and calculated to support the Bank of Jamaica (BOJ) in its efforts to return and keep inflation within the target range,” Dr Clarke said.
• The BOJ’s monetary policy action, supported by prudent fiscal policy as well as a moderation in imported commodity prices, has resulted in a sharp decline in 12-month point-to-point inflation from a high of 11.8% in April 2022 to 5.1% in October 2023. However, the Central Bank advises that, as a result of the adjustments in PPV fares, they are expecting a reversal of the downward trend in annual inflation starting in November 2023.

(Source: JIS)