The Office of Utilities Regulation (OUR) has given its nod of approval to the 40 per cent bus fare increase requested by the Jamaica Urban Transit Company (JUTC).

However, the OUR has warned that despite the increase, the Government will have to provide between $1.3 billion and $3 billion in subsidy to the state-run bus company.

In its recommendation to Transport Minister Mike Henry, the OUR said the subsidy would only be applicable if the JUTC was granted its request for adult fares to be increased from $50 to $70, and the fares for concessionary passengers, including children, is moved from $15 to $20.

However, the Government could reduce the amount that it would have to provide to the JUTC if it allows an even greater increase.

Henry is expected to announce his decision by next week, with the new fares scheduled to take effect before the end of this month. JUTC regular service fares were last increased in October 2005.

The OUR has repeated its 2005 recommendation that the JUTC be allowed to adjust its fares annually to reflect the increases in its operating costs. The utilities watchdog has also recommended that the bus company be allowed to hike its fares if fuel cost increases by more than 30 per cent over any six-month period.

route taxi increase

In the meantime, the OUR has recommended that the base fare for route taxis moved to $65 for the first two kilometres and $4 for each additional kilometre.

In May last year, Henry approved an increase in the base rate for route taxis from $44 to $55, with $3 added for each additional kilometre.

If he accepts the OUR's recommendation this time around, commuters should see an approximate 10 per cent jump in the fares for each route.