Trade Ministry wants PUC control of mini-bus fares
by Gwen Evelyn
THE Trade Ministry supports the view that mini-bus fare structures should be controlled by the Public Utilities Commission (PUC). Permanent Secretary at the Ministry, Mr. Tarchan Ramgulam yesterday said the PUC would then decide what the fares should be. "We are working on that," Ramgulam said during a telephone interview. He added that a recommendation will be submitted to Government to this effect. "We are pursuing this path," he assured, adding that the mini-bus associations support this move. Meanwhile, the Guyana Energy Agency (GEA) has pledged to ask gas companies to regulate themselves properly. Energy Coordinator, Mr. Joseph O'Lall yesterday said it appears that the gas companies do not want to cut back on their profit margin which he added "is large anyway". O'Lall said these companies need to understand that the economy is not at its best. The GEA will meet with the companies to find out why they have increased their gas prices. And unless the agency is satisfied, it will institute regulations that would control gas prices. At the moment, the GEA is looking up regulations used to govern gas prices in other parts of the world so that a system can be formulated in Guyana. "Unless they can show the GEA that the cost is justified, they will have to reel back the prices," he said. O'Lall said that Guyana does not have regulations governing fuel prices since this is a competitive society and companies are allowed to adjust the prices according to their own considerations. "But if they want us to say that your gross profit should be at a particular percentage, then we will say that," O'Lall pointed out. He added that the GEA believes in competition since in the end, consumers are supposed to benefit as a natural result. However, competition does not mean a cartel where one person raises his prices and everyone else follows suit. Mini-bus and hire car operators announced their intentions to increase fares. Mini-bus owners at a meeting said commuters will be asked to pay on entering the vehicle to ensure that they pay the new tariff. The fare structure proposed is: Kitty/Campbellville - $40; East/West Ruimveldt - $40; South Ruimveldt - $50; school- children during school days - $20 (but full fare Sundays and holidays); children under ten, half price and elderly persons and pensioners - free. Gas prices, now at $300-$304 a gallon, are projected to rise to between $365 to $370 a gallon with similar increases for diesel and kerosene. It is understood that the dealers are increasing their prices way out of proportion to the acquisition cost.
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