Latest update April 7th, 2025 12:08 AM
Mar 24, 2011 Features / Columnists, Peeping Tom
Minibuses in Guyana are not running at a loss because of the increases in the price of fuel, spares of lubricants. Minibuses make a great deal of money and even though the price of petrol has once again reached it highest level, the bus owners are not going bankrupt.
They may not be making as much as when petrol prices were lower but even if the price increases a further $200 per gallon over the next few weeks, there is no way that minibuses will be forced off the roads because of being cash- strapped.
What is happening is that instead of these buses raking in profits of an average of $10,000 per day, these profits are less but still enough to pay the drivers and conductors with sufficient left over for the owners to meet their down payments at the hire-purchase companies and at the banks. No one has yet filed for bankruptcy in the Courts of Guyana because of the rise in fuel prices.
Yet every time the price of petrol increases at the pumps, there are attempts to raise fares resulting in the Ministry of Tourism, Industry and Commerce having to intervene by pointing out that it has not approved of any fare increase.
There is no regulation of mini-bus fares in Guyana and therefore there is no need for the government to have to approve any increases in fares. The minibuses do not need the approval of the government to raise fares. They are operating in an open market that is unregulated and therefore there is no requirement for the commerce ministry of sanction any increase in fares.
Hire cars do not need any approval to increase their fares. Neither do the minibuses.
One reason why some minibuses are threatening to increase fares and not doing so, is because the minibuses feel that if the government approves of the increase it would make it easier for the commuters to accept the increase.
Once the government approves the fares the minibuses can deflect this decision onto the government who will then take the blame for any displeasure that the traveling public feels over the decision.
The second reason why the minibuses want the approval of the government is because they are fearful that if they do increase prices and this does not find favour with the government, the government may opt to remove duty free concessions which they enjoy and this will be added burden to them since they will be forced to now absorb these costs.
The government is fully aware that the removal of the duty free concession is what the minibuses are fearful of and they also know that the minibuses know that these concessions were granted in order to keep fares low. The government is therefore in a strong position to indicate to the minibuses that they are as free to increase fares as the government is to remove the duty free concessions.
The minibuses do not wish to see the concessions removed and therefore their strategy is to await the government’s approval of fares so as to not have to lose the concessions.
As such, the minibuses are attempting to put pressure in order to secure a fare increase. There have been a few work stoppages in order to underscore their demands.
At one stage, the buses stopped running in Georgetown. This left a number of persons stranded. This was an irresponsible action on the part of the buses and the “man with the hammer” decided to bring in some big buses to provide free transportation. The next day the buses were back on the road.
The strategy then switched to the East Coast. In some cases, commuters were told that they would be dropped off in the city but there was no guarantee that the buses would work in the afternoons. In short, there was a threat of withdrawal of service which would have left thousands of ordinary workers stranded in the city and unable to go home.
This is how some operators treat the very people who place money in their hands. These threats are not the way a good businessman should treat his customers. In the case of the service in a section of the city, the minibuses withdrew the service without giving adequate notice, thereby leaving hundreds of commuters stranded. What a thing to do to your customers!
It is therefore time for the commuters to speak up and indicate that they wish to see minibus fares regulated and for there to be rules governing the withdrawal of service.
It is time for the commuters to call for regulations which would see the licenses of minibuses being suspended if services to the public are withdrawn without adequate notice.
Minibuses are not doing anyone a favor. The public is paying for a service and therefore the public has a right to demand that legislation be passed that if a minibus operator withdraws his or her service without providing adequate notice that person should be de-licensed.
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