COMMUTERS in the Kingston Metropolitan Region could begin paying as much as $110 to travel on Government-run Jamaica Urban Transit Company (JUTC) buses, effective April 1, a reliable Observer source said last night.

The decision has already been taken at Cabinet for an increase of $110 and $30, but that is only in principle as nothing has been set out on paper as yet, the source said.

The fare hike will be a 120 per cent increase on the $50 commuters have been paying to ride on JUTC buses since 2005.

Fares for children, the disabled and senior citizens, regarded as members of the concessionary grouping, will see their fares go up by 100 per cent, moving from $15 to $30, also from April 1.

The whole focus is to have the adults paying the larger amount and you still somewhat protect the concessionary groups, the source said.

However, another source said further consultations will be held on the matter, which could see a downward movement of $20 in the adult fare before the official announcement is made.

The increase in bus fares forms part of the agreement under the International Monetary Fund (IMF) for Government to sharply reduce its subsidy to the state-owned bus company, which has been operating at a loss for several years.

The JUTC last year asked the Office of Utilities Regulation (OUR) to approve a fare increase of $20 for adults, which would see it moving to $70, and that the rate for persons in the concessionary groups be moved from $15 to $20.

The OUR last November gave approval for a 40 per cent bus fare increase, but warned that despite the increase the Government would have to provide between $1.3 billion and $3 billion in subsidy to the state-run bus company.

In its recommendation to Transport Minister Mike Henry, the OUR said the subsidy would only be applicable if the JUTC was granted its request for adult fares to be increased from $50 to $70, and the fares for concessionary passengers moved from $15 to $20.

However, our source said with the IMFs push for Government to lessen its subsidies to the bus company, a $20 increase for adult fares could no longer be considered.

The struggling bus company has projected an operating loss of $1.3 billion this year, and an increase in bus fares is expected to significantly reduce the JUTCs burden on the public purse.

Last night, Reginald Allen, the JUTCs communications manager, told the Observer that last years request to the OUR for a 40 per cent fare increase related to the existing level of subsidies from the Government to the stateowned company.

But going forward under new dispensation with the IMF agreement, the indications to the company are that subsidies will be sharply reduced so there has to be an examination of other pertinent figures in respect of the companys fare structure, Allen said.

When pressed about the final figures for the fare increase, Allen said it was a decision for the Cabinet, which he said the company was awaiting to act accordingly in terms of implementation.