Transport Minister Mike Henry has already signalled an increase in the number of buses the Jamaica Urban Transit Company will roll out within the next few weeks. - Ricardo Makyn/Staff Photographer

Commuters who travel by the state-owned Jamaica Urban Transit Company (JUTC) buses can brace for a fare increase shortly and indications are that this could be as much as 50 per cent.

Finance Minister Audley Shaw stayed away from the subject yesterday when he told Parliament how he intends to finance the Budget.

However, once Shaw announced an increase of $8.75 per litre on the special consumption tax on gasolene, it was clear that JUTC commuters would soon be asked to pay more.

If there were any doubts, these were removed when the finance ministry tabled the public bodies Estimates of Revenue and Ex-penditure for the 2009-2010 fiscal year.

New buses to come

The estimates show that after pulling in an estimated $1.9 billion in fares last year, the Govern-ment has projected an 83 per cent increase in fare collection this year. This is expected to give the bus company $3.5 billion from fares.

Transport Minister Mike Henry has already signalled an increase in the number of buses the JUTC will roll out with at least 50 more new Volvo buses expected to hit the roads within the next few weeks.

Reduction in operating losses

However, that is unlikely to result in the dramatic increase in fare collection which the adminis-tration has projected.

The bus company is also expecting to see a sharp reduction in its operating losses this year with lower staff cost, less money spent to repair vehicles and a reduction in its insurance payment, among other expenses.

This should leave the company with an operating loss of $457 million, down from an estimated $1.8 billion last year.

arthur.hall@gleanerjm.com