THE management of Jamaica Urban Transit Company (JUTC) says it doesn't know exactly how much fuel is being stolen from its depots, but is aware that the loss to the company is significant.

This as the company struggles to meet fuel costs which have skyrocketed over the past several months, prompting it to appeal to its parent ministry for more funds to meet those demands.

"The JUTC has had a very big challenge with pilferage from its inception. We have tried to quantify pilferage, but it has eluded us because we run an operation that's 24 hours, seven days a week, so at 2 or 3 o'clock in the mornings activities can possibly take place. It is an item that is highly required out on the road, and probably entails quite a bit of collusion, and it's very difficult for us to put a figure on it. We have a pretty good idea that there is a substantial figure out there," head of the government bus company Paul Abrahams told the Public Administration and Appropriations Committee (PAAC) at Wednesday's meeting, after Member of Parliament (MP) for Trelawny Northern Tova Hamilton asked about the cost of the illegal activity to the company.

The MP argued that, based on this unknown dollar amount, the JUTC's accounts do not accurately reflect its operating expenses.

"If there is a significant amount of pilferage taking place then that is separate and apart from the operations," she asserted.

Over a year ago Abrahams told the Jamaica Observer that the company was seeking to address its fuel issues by having a separate entity handle receiving and dispensing fuel at its locations. He said this would also eliminate the chronic problem of pilferage, especially at its depots, which are located in volatile communities. The JUTC now buys its fuel from private entities, not the State oil refinery Petrojam.

The JUTC noted that it has started testing the use of natural gas as part of efforts to move towards fuel diversification, and is exploring the use of biodiesel and other environmentally friendly energy options in order to improve operational efficiency and reduce emissions. This is supposed to reduce fuel costs by an average of 12 per cent and extend the engine life of the units, as well as provide real-time fuel use and reconciliation, and reduce pilferage.

Meanwhile, committee chairman, Mikael Phillips, commended the JUTC management for implementing some levels of cost-savings given that it was only operating with half of the 450 buses which it needs.

"I get the impression that the JUTC isn't given the importance that it ought to. The impression is you've basically given the team at JUTC basket to carry water," he said, pointing out that 50 more buses will not significantly improve the JUTC's operations enough.

Phillips added that the lower number of unit roll-out during the height of the COVID-19 crisis should have been used to do an in-depth analysis of the JUTC to review it operations and routes.

Further, permanent secretary in the transport ministry, Dr Alwyn Hayles, said the ministry is aware that the JUTC will need several hundred buses and is now strategising a procurement plan.

"When we purchase 50 buses at a time, the 50 buses seem to be considered as a special project, [but] 50 buses really should be routine. If you're running a certain number of buses you should be in a position to annually talk about replacing eight to 10 per cent of your fleet, if we are getting 10 or 12 years' [use] out of each bus," he said, while Abrahams advised the committee that there are approximately 200 buses in the JUTC's assets register which have been written off or cannot be repaired.

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