Minibus operators are still calling for an increase in bus fares mainly because of the escalating fuel prices and also the maintenance costs of their vehicles.

Speaking to the Guyana Chronicle, some bus drivers plying various routes said that they are supporting the increase of fares because of the rise in fuel cost and the escalating prices of vehicular spares.

One bus driver explained that not only the high cost of fuel price that is prompting this but the gas stations are increasing the fuel prices regularly and also high cost of accessories such as batteries, tyres and brake pads.

However, some operators said that they are waiting to see the outcome of the ongoing meetings between the Minister of Tourism, Industry and Commerce, Mr. Manniram Prashad and the transportation associations before making any decision.

On the other hand, a few drivers said they are contemplating to increase their fares from today because they have to survive and make a profit.

?ventually we are going to have to increase our fares because we can’t afford to continue because of the rising cost of fuel,” one driver pointed out.

Prashad last week advised the public not to pay any increase in minibus fares after meeting with the representatives of the Guyana Public Transportation Association (GPTA); President of the United Minibus Union, Mr. Donald Backer; President of the General Minibus Association, Mr. Linden Weithers and adviser Hilbert Archer to discuss the issue of hiking the fares and it was decided that there will be no increase effective May 1.

The Minister had also said that the GPTA has disassociated itself from a statement that suggested that the minibus fares countrywide would be hiked.

The minister is expected to reach the associations tomorrow for ongoing discussions on the matter.

Checks with the various fuel stations showed that gasoline price varies from $859 to $938 per gallon.

The rise in fuel prices has been a problem worldwide due to various factors including the increasing demand for expanding economies mainly India and China.

An important contributor to price increases has also been the slow down in oil supply growth and besides supply concerns many other issues have also had some effect on oil prices. Labour strikes, hurricane threats to oil platforms, fires and terrorist threats at refineries, and other short-lived problems which are not solely responsible for the higher prices but do push prices higher temporarily, but have not historically been fundamental to long-term prices increases.

The United States (U.S) led 2003 invasion of Iraq was a significant event for oil markets because of Iraq’s large oil reserves. Prices dropped in mid-2003, and several observers attributed this to the perception that the armed conflict would come to a quick resolution. The War coincided with an increase in global demand for petroleum, but it also reduced Iraq’s current oil production, and has commonly been blamed for at least part of oil price increases since.

As a direct consequence of the Iraq war that followed the 2003 invasion of Iraq the oil production capacity of Iraq was cut from more than three to two million barrels per day.