JUTC hit by high fuel prices; to seek more gov't support

 

The Jamaica Urban Transit Company (JUTC) on Wednesday revealed that it has suffered a major hit from high fuel prices and will have to return to the Ministry of Transport by September for additional budgetary support.

 

Four months into the 2022/23 fiscal year, the JUTC says despite the reduced rollout of buses, its fuel bill has skyrocketed.

 

The matter came up on Wednesday when executives of the state-run entity appeared before Parliament's Public Administration and Appropriations Committee.

 

JUTC Managing Director Paul Abrahams told the committee that the fuel budget will be depleted in two months. 

 

"We're seeing that our figures are moving almost 35% to 40% increase in fuel prices and the reduced bus run out has helped us in that aspect but if we were in the position of running all 325 buses, we'd be at the Ministry of Transport and Ministry of Finance already," he said, noting that due to the increase, the company's fuel allocation "will carry us to September or October of this year only". 

 

Mr. Abrahams said the company is in the process of contacting the Transport Ministry to inform it of the challenge in paying for fuel for the rest of the financial year.

 

 

The JUTC said it should be able to stay within the $194 million budget for toll payments. 

 

Toll rates for Highway 2000 East-West were increased on Saturday.

 

Mr. Abrahams said based on the price increase, the JUTC is now paying an additional $600,000 weekly to access the highway. 

 

He said the company might be able to "ride out the storm" only because it has fewer buses operating at this time.