Cabinet Extends $2 Bus Fuel Subsidy Until March 2027

Cabinet has approved a $2-per-gallon fuel subsidy for eligible bus operators through March 2027, unless fuel prices fall below $12 per gallon before then.

The decision extends government support to the public transportation sector following weeks of uncertainty over whether the subsidy would continue and warnings from the Belize Bus Association (BBA) that high diesel prices were making operations increasingly difficult.

In a September 2 letter to BBA President Philip Jones, Chief Executive Officer Chester Williams confirmed that Cabinet had approved the association’s request, subject to conditions.

The new subsidy takes effect at the end of the previous subsidy period and may continue until the close of the fiscal year on March 31, 2027. However, the arrangement is conditional: if fuel prices fall below $12 per gallon, the subsidy may end before March.

Cabinet has also ordered a review every two months to assess the programme’s progress and effectiveness. The Ministry of Transportation will monitor fuel prices and participating operators’ compliance and submit reports to Cabinet indicating whether the subsidy remains necessary.

The decision provides considerably more certainty to operators following a dispute that came close to disrupting public transportation last month.

On August 24, the BBA announced that its members would continue operating buses despite previously signalling that services could be discontinued. The association said it had raised the fuel-cost issue with Transport Minister Dr. Louis Zabaneh on July 15, ahead of the expiration of the previous subsidy, and agreed to continue services while awaiting Cabinet’s consideration.

The latest arrangement maintains the subsidy at $2 per gallon, down from the $3 per gallon provided during the first three months of government assistance earlier this year.

Government spent approximately $1.5 million during the first three months of the subsidy programme, according to Zabaneh.

The subsidy emerged after months of pressure from independent bus operators as international fuel costs pushed domestic diesel prices sharply higher.