Posted on

Would NOBA reduce fares when fuel prices fall?

Share

EDITOR: The debate continues about NOBA’s request for fare increases based on the rising cost of fuel and high cost of spare parts and tyres.

Having read in the newspaper about the approved fares given to the minibus in 2005, I was left to wonder why in some areas such as North Leeward it was not implemented. Is it the fault of NOBA or is it that NOBA were not aware of these prices in fares.{{more}} If the former is true then NOBA must be blamed.

The price of fuel on the world market is falling so if NOBA gets an increase would there be a reduction in fare when the cost of fuel is reduced? When the VAT takes effect May 2007 it is expected that the price for spare part and tyres will be reduced, then will NOBA reduce the bus fares?

In terms of the argument that the vans are operating at a loss, in many cases some operators do not operate their buses as a business. For example in North Leeward in the morning, most of the vans leave by 7:00 am, and then there are few vans available afterwards. They would try to run against each other during the course of the day. Many will leave town with few passengers going and coming and at the peak hours after 4:00 pm when there are many passengers on the road they are hardly available. At those times they are certain to leave town with a capacity crowd.

So if they sit down and try to operate their vans as business they would realize that in the evening is their biggest profit. Then at the end of the day, they have acquired large expenditure with a small income.

Also the speed at which these vans go is in itself a risk and also attract large expenditure by using plenty fuel and plenty brakes. Thus if the van operators restructure their business and organize themselves properly in a business-like way, they would be able to operate their vans more profitably.

It is therefore important that NOBA members become businesslike and be careful with their action for it can lead to serious implications.

Kennard King

LATEST NEWS