Transport Industry: Bus Operators Demand Fare Increase

The recent increase in diesel prices, now set at Rs 71.25 per liter, has raised concerns among bus operators. They find the situation increasingly unsustainable without a fare adjustment.

Dhiraz Dosieah, Manager of Mauritian Bus Transport, is adamant. "With this second price hike for diesel in less than a month, many bus companies risk going into the red. Fuel and labor costs alone account for nearly 80% of bus companies' expenses, leaving very little room for maintenance and profit," he stated. In light of this situation, operators are reaching out to the authorities. "We sent a letter to the Ministry of Finance two weeks ago. We will send another official letter to explain our situation and propose some recommendations," Dhiraz Dosieah explained.

According to him, increasing bus fares now seems like an inevitable option. Besides the rise in diesel prices, several factors work against the operators: increased freight costs have led to higher prices for buses, spare parts, and tires. "Everything is rising in a cascade." As such, operators are urging the government to reconsider subsidies – which have been reduced to 33% this year – and to contemplate a revision of public transport tariffs. The exact fare increase they will propose to the government will be decided during an upcoming meeting with various operators.

• Diesel prices have seen two increases from March to April, rising from Rs 58.95 per liter on March 24 to Rs 64.80, and then to Rs 71.25 on April 16, totaling an increase of Rs 12.30 per liter.
• 1,933 is the number of buses in operation in the country, according to the latest data from Statistics Mauritius.
• In Mauritius, the majority of operating buses are low-floor buses of Chinese brands.

He said

Shaktee Ramtohul, economic observer: "The price of Brent crude was around $70 per barrel before the conflict in Iran escalated. It has been on an upward trend since February 28, following the joint attacks by the U.S. and Israel on Iran, peaking at $119 per barrel in early April. The fluctuation in oil prices is unfortunately closely tied to the prospects of a peace agreement between the U.S. and Iran. The Trump administration is sending mixed signals regarding a ceasefire and peace agreement, creating significant uncertainty in global markets. Mauritius remains at the mercy of these events. The rise in gasoline and diesel prices will inevitably fuel inflation due to its multiplier effect. Transportation costs will increase, but diesel is also a crucial input for heavy machinery in agriculture and construction, which could lead to higher food prices while significant construction projects risk cost overruns. Moreover, the price increases will reduce households' disposable income."

Did You Know?

A bus consumes…

• 60 liters of diesel per day (Japanese brand)
• 120 liters of diesel per day (Chinese brand)