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Fiji bus operators warn of cash-flow crisis as fuel costs surge, call for urgent government relief

Public buses parked along the street in Suva, Fiji.

Bus operators across Fiji are warning the public transport system is on the brink of a financial collapse as fuel costs have driven the sector into a mounting monthly deficit now estimated at about $5 million. New figures from the Fiji Bus Operators Association show the shortfall widened dramatically between April and June as fuel consumption bills surged.

Association president Nisar Ali Shah told media the industry’s fuel bill rose from roughly $2.8 million in April to $6.3 million in May and about $9.5 million in June. After accounting for ordinary operating expenses and fare revenue, operators recorded a net shortfall of about $1 million in April, $4.3 million in May and approximately $5 million in June. “Definitely there will be a reduction in the service and then we don’t want the public to be affected with this,” Shah said, warning that continuing losses threaten service availability and the sector’s long‑term financial sustainability.

Shah said many operators are continuing to absorb rising costs to keep buses on the road, but that tolerance is limited. The association is calling for urgent government attention and a pragmatic response as fuel price volatility erodes margins and undermines operators’ ability to maintain timetables and fleet upkeep.

The government has moved to shield commuters from an immediate fare hike. Finance Minister Esrom Immanuel confirmed earlier that the state will fully subsidise a planned 22.5 percent increase in bus fares so passengers will not pay the higher rates. Officials said this support is on top of an existing 10 percent bus fare subsidy already in place, effectively meaning the government, not commuters, will underwrite the nominal fare adjustment.

While the subsidy removes the immediate burden from passengers, Shah said it does not automatically resolve operators’ cash flow crisis because fuel costs have far outpaced recent fare adjustments. The association’s figures indicate the pace of fuel expense growth — more than tripling from April to June — has created a recurring monthly deficit that one-off measures may not close without further, sustained support or cost relief.

Transport stakeholders say the coming weeks will be critical. If fuel prices remain elevated or continue to climb, operators may be forced to reduce frequencies, retire older vehicles earlier than planned, or seek additional government assistance to avoid service disruptions. The association has indicated it wants urgent talks with relevant ministries to explore measures such as targeted subsidies to operators, fuel relief arrangements or other interventions to stabilise the sector.

This development follows mounting public concern about the affordability and reliability of public transport amid global fuel price volatility. With the industry’s losses concentrated in the recent quarter, both operators and government officials will be watched for rapid policy responses to prevent wider disruption to daily commuters and urban mobility.


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