Despite a reduction in gas prices at state-owned fuel stations, commuters shouldn’t get their hopes up for lower fares, according to minibus and hire car operators, who say the cost of spare parts and maintenance remains exorbitant.
In an invited comment, President of the United Minibus Union Eon Andrews told Stabroek News fuel prices are not the only factor in determining fares. He was at the time responding to a call by the Ministry of Tourism, Industry and Commerce for operators to pass on the benefits of the reduction to commuters.
On Monday, government announced a 30% reduction in prices at state-owned fuel stations to reflect the drop in world market prices for oil, while hoping that private stations would follow suit.
Many operators plying routes in and around the capital city set fares at $80 during the last increase, but many accept payments of $60 from commuters.
Route No. 45 (Main Street-Lamaha) bus driver Wendy (only name given) told Stabroek News spare parts are still expensive. She explained that although the fuel is cheaper, the cost for a single used tyre is $5,000. She added that as many as three times a week, tyres might have to be changed.
Wendy also said other expenses, such as replacing doors and the carburetor, among other parts, play a factor in fares too. “If they get the parts dealer to drop their prices, then we would be able to drop our prices,” the woman said.
Wendy said it was because of expenses associated with spare parts that her bus is parked. “The bus don’t run with gas alone,” she said, adding “With maintenance, you spending more than you earn.”
A Route No. 41 (South Ruimveldt-Guyhoc Park) bus driver, who spoke on the condition of anonymity, said bus operators have been lobbying for an increased fare since 2008 and have always gotten a hassle. “GPL [Guyana Power and Light], spare parts and cooking gas don’t drop,” the driver vehemently opined, as he labelled the current fare as “barely manageable.” “The drop reasonable but the spare parts going up,” another driver at the bus park added.
Some drivers even suggested that the fuel cost reduction does not “really help out the situation.”
“All the time when the gas was high, we were feeling the pressure,” said a bus driver from the Route No. 44 (Georgetown-Mahaica) bus park. He said the fuel reduction merely lessens the burden of expensive maintenance, rather than the misperception that the profits were increased.
Commuters, on the other hand, have expressed the hope that the fuel reduction would also benefit their pockets. Nevertheless, they are not expecting a drop in fare. “I feel that the government should set up a board through which drivers can apply for jobs and the government would be able to regulate their [drivers] behaviour and prices,” said one commuter. He added, “That is why the operators do what they want.”
In a press release on Tuesday, the Tourism, Industry and Commerce Ministry called on all service providers and producers of consumer goods “to apply conscionable measures by passing on the benefits of the fuel reduction cost to consumers in an effort to ease the cost of living of Guyanese and other residents.”
The release added that the ministry, via its agencies, has been engaging certain associations and representative bodies in response to their advocacy endeavours for relief when revenues stream have been negatively affected. The ministry noted that it is looking forward to initiatives by those businesses which will benefit significantly from the reduction in fuel to promptly commence a downward adjustment for payment by consumers for goods produced and services delivered.
The ministry singled out businesses and their representatives to “take note and act accordingly.” It added, “We hope that such measures will be initiated even before the ministry commences discussions aimed at arriving at a formal position among parties.”
Those identified included the United Minibus Union and other representatives of minibus operators, the Speed Boat Association, and the Guyana Taxi Service Association.
When contacted for a response to the call by the ministry for the passing on of benefits of fuel reduction cost to consumers, Andrews, of the United Minibus Union, told this publication that “one has to remember that vehicles don’t operate on gas alone.” He also called for “careful consideration” and dialogue with all stakeholders before any decision is made by the operators.
He said the government does not look after the transportation sector, which it often views as “a private thing.” He said the operators are also consumers and have to deal with Value-Added Tax [VAT] and provide for their families.
Nevertheless, he added that the union will be meeting in the near future to discuss a way forward.
He further mentioned that because of the free market system, “there is no restriction on the importation of buses,” which results in market saturation, affecting their earning power. However, he noted that the union is not against lower fares, but pointed out that other factors would have to be dealt with.
In addition, he said GPL has not announced a reduction in its rates as a result of the reduction of fuel prices, yet there is a call for the minibuses to do so.
Stabroek News also visited the Sheriff, GR, and Ezee taxi services, where operators all cited expensive spare parts for their inability to reduce their fares. Independent hire car operators also mentioned the high cost of maintenance as reason for no reduction on their fares, even with the reductions at the pumps.
