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Fiji government to absorb full 22.5% bus fare hike with $2 million monthly subsidy to shield 350,000 commuters

Public bus in Fiji traveling through lush tropical landscape.

The Government has stepped in to shield bus passengers from a recent 22.5 percent fare adjustment, announcing it will absorb the full increase so commuters will continue to pay current rates. Officials said the move will protect more than 350,000 Fijians who use bus services every day from higher transport costs and ease pressure on household budgets amid rising living expenses.

To fund the subsidy, the Government will allocate roughly $2 million each month to offset the fare rise, a commitment that amounts to about $24 million a year. Authorities described the measure as part of an ongoing effort to ensure essential services remain affordable for workers, students, families and communities that rely on public transport for daily travel to work, school and services.

The decision marks a broadening of earlier transport support. In previous coverage, the Government had signalled targeted assistance — including measures outlined in recent budgets and specific subsidies for student travel — but this latest intervention absorbs the full 22.5 percent adjustment across general bus services rather than limiting relief to particular groups. Joel Abraham, chief executive of the Fijian Competition and Consumer Commission, has in past statements confirmed government support for student fare changes; the new announcement extends similar protection to the wider travelling public.

Government officials say the subsidy will be paid directly to bus operators so passengers continue to pay existing fares while carriers receive the full adjusted rates. The measure is intended to prevent a cost shift from operators to households at a time when many families are already feeling the strain of rising prices. Officials emphasised that keeping public transport affordable also supports labour mobility and access to education, which are critical to economic activity and social inclusion.

Transport operators and industry bodies had previously welcomed government assistance for student transport and budget increases for transport support; the Government’s latest commitment provides a clearer, ongoing funding stream for general fare stability. While the $2 million monthly allocation signals a significant fiscal commitment, officials framed it as a necessary expense to temper the immediate impact of inflation on ordinary Fijians.

Further operational details — including the mechanics of payments to operators, the duration of the subsidy and any conditions attached — were not detailed in the initial announcement. Observers and stakeholders will be watching for more information on how long the Government intends to sustain the monthly allocation and whether complementary measures will be taken to improve service reliability and long-term affordability in Fiji’s public transport sector.