THE Fiji Commerce and Employers Federation says the government’s plan to absorb the recent 22.5 per cent bus fare increase will create positive multiplier effects across the economy.
FCEF chief executive officer Edward Bernard said the measure would allow workers to continue commuting without additional financial pressure while enabling businesses to maintain normal operations.
“This means workers will be able to commute to and from work without additional financial burden, while allowing business operations to continue with minimal disruption,” Bernard said.
He said the government’s intervention would provide relief to about 350,000 commuters, including families with school children, as well as thousands of businesses that rely on public transport for workers and customers.
Bernard said that although the measure would cost the government about $FJD2 million a month, it would help keep factories and offices operating while sustaining demand for goods and services.
He said this would also support consumption and government revenue.
FCEF acknowledged that the latest support measure comes in addition to the existing 10 per cent bus fare subsidy already provided by the government.
The Fijian Competition and Consumer Commission approved the fare adjustment to assist bus operators facing rising fuel and operational costs.
The new bus fares will take effect from May 26, 2026.