Cabinet turns down bus fare increases

The Prime Minister has maintained that the Cabinet is not willing to increase passenger bus fares at this time, in response to a recent call by the National Bus Association (NBA) which claims “A bus fare frozen since 2007 cannot sustain a transport system operating in 2026.”

“Increase in the fares may be justifiable on particular routes, but a blanket increase is a highly unscientific approach and it is not something we can simply accept; notwithstanding there has not been an increase for the past 17 years,” said Prime Minister and Minister for Transport, Hon Dickon Mitchell.

Speaking to the issue during a media conference on Wednesday, he said, “While we understand the concern of the bus owners, we also understand the concern of the public where transportation is not currently cheap. So, we are trying to find the right balance by looking at the routes to ascertain if there are routes where the price increase is justified.”

Calls for fare increases of 50 cents to $1 were made by the NBA in 2024 to which the Government instead agreed on other measures to ease transportation costs including the Fuel Tax Rebate Programme and concessions on vehicle parts.

The one-year Rebate came into effect from June 2025, and over the past two months fuel prices remained capped at $17. Therefore, Hon Mitchell explained, “So taxpayers are paying for some of the fuel you use in your bus by ensuring you don’t pay the full retail price. By giving you a rebate means we are giving you back the monies you spent on fuel.”

According to the Permanent Secretary in the Ministry of Transport, Isabell Morris, Government is about to implement the 50% Duty Free Concessions Programme on essential parts and tires, as “in collaboration with the NBA, the list is now finalized.”

Recognizing there are about 1,500 bus operators nationwide, scores of whom are not registered with the NBA, she informed of efforts to develop a database via a National Registration Drive that started June 06 to July 06 to “open access and concession for all…and make sure that the support gets where it is meant to go.”

Highlighting the benefit, Prime Minister Mitchell further stated, “This means we are making it cheaper for you to run your bus. So we can’t on the expenditure side, give you all of those concessions and then agree to a fare increase because it is the taxpayers, the same people who use the buses, funding it.”

Referencing future discussions with the NBA, he said “We are hoping that common sense will prevail and we can find a compromise….”

Earlier this week, the NBA acknowledged the $1.7 million received through two government-supported initiatives over the past year, but advanced “A stronger transport system requires more than rebates. It requires meaningful investment, modernization and policy reform.”

In response to the Grenada Transport Commission (GTC) announcement last week of its investment in the sector through the Fuel Tax Rebate Programme (EC$1,449,037.52) and the Western Bus Passenger Relief Initiative (EC$250,985.00), the NBA in a statement on its Facebook page informed that the figures reflect “about EC$348 per bus per month, or roughly EC$11.46 per bus per day when distributed across an estimated 375 registered buses.”

It added, “While appreciated, this level of support does not address the underlying challenges facing the industry” pointing out “bus fares have remained unchanged since 2007, while fuel, insurance, vehicle costs, parts, maintenance, and the overall cost of living have increased significantly.”

Reiterating the NBA’s call for higher fares, President Derek Mc Kenzie added while fuel prices have been capped at $17 “…our operational cost is still increasing. We see other entities that are not regulated increasing their fares which is of concern to us.”

He disclosed that for short routes, operators use up about 10 gallons of fuel for per day which costs around $170 and over $200 for fuel on longer routes.

Further, the NBA revealed “Based on approximately 8,800 secondary school students travelling daily, a 50-cent concession each way, and a school year of roughly 190 days, bus operators have contributed an estimated EC$31.8 million in support of Grenadian families over the last 19 years.”

Therefore, the NBA in its statement is advocating for the following:

• A comprehensive review of bus fares and transport policy.

• Expanded concessions on tyres, parts, and other operating expenses.

• Improved terminal and route management.

• Investment in technology and live transport management systems.

• Dedicated measures to improve service efficiency and reliability.

• Fair enforcement of laws against illegal passenger transport operations.

• Additional support programmes for routes that are vital to commuters but increasingly difficult for operators to sustain.

Prime Minister Mitchell admitted that transportation in Grenada is “woefully inadequate for addressing the needs of the country…and the 1,500 bus owners who operate in the system are private persons who own a private asset, seeking to maximize the return on their investment, and this is understandable.”

However, recognizing transportation as a public service, he reported that Government is seeking to bring in electric buses from China “with the hope that by the first quarter of 2027, we have at least 30, 22-seater buses here.”

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