DOTr wants LTFRB to review fare hike decision

The Department of Transportation (DOTr) is urging the Land Transportation Franchising and Regulatory Board (LTFRB) to review its recent order increasing the minimum fare for public utility jeepneys in light of lower oil prices in world markets.

“We will recommend to the LTFRB to review the fare increase. In the meantime, however, since there is already a decision, LTFRB can still implement the increase pending the review,” Transportation Undersecretary for Road Transport Mark De Leon said in a news forum in Pasay City on Wednesday.

The LTFRB released its decision on October 18 and published it in newspapers on October 19. The order will take effect on November 2, Friday.

The decision made permanent the provisional fare increase of P1 granted on July 6, 2018 and an additional P1 for the first four kilometers, or a minimum fare of P10 from the original P8. 

De Leon said the DOTr’s call for the LTFRB to review its order stems from declining fuel prices.

“Para silipin ‘yung existing parameters. Bago na ‘yung parameters ...” he said.

According to a tweet by GMA News’ reporter Joseph Morong, LTFRB Chairman Martin Delgra III said that the agency will review the fare hike decision after DOTR's appeal.

LTFRB Chairman Martin Delgra: LTFRB to review P1 fare hike after DOTR urged it to reconsider decision granting petition; meanwhile, farehike is still effective and will take effect on Nov. 2 @gmanews

— Joseph Morong (@Joseph_Morong) October 31, 2018

At the same forum, Transportation Secretary Arthur Tugade said the fare increases should be based on a pre-determined matrix with clear guidelines on how and when fares should be increased or lowered.

Tugade said he does not want a situation in which meetings, deliberations, and discussions are held each time there is a request for a fare increase.

“That takes time. Baka ‘pag dating ng panahon na approved na ‘yan, the situation that existed when you were asking for a fare increase is no longer there. Kaya nga kailangan ang arrangement mo is pre-determined matrix,” he said.

The DOTr will instruct the LTFRB to come up with a “parametric formula” so that fare adjustments will become automatic rather than rely on petitions.

Tugade cited the matrix used in the aviation sector, noting that adjustments in fuel surcharges are based on the price of fuel per barrel and the consumer price index.

“Ang presyo ng gasoline, pag tumaas per barrel, or ‘yung consumer price index tumaas, magtaas ka at a certain amount. Pag bumaba, automatic ibaba mo rin. Pag hindi ka sumunod, may penalty,” he said.

The Cabinet official said the fare matrix must be the subject of discussions and deliberations, not the petitions.

“That matrix is not unilateral, that is the one subject to hearing. Pag nag agree ‘yan, smooth sailing na po,” Tugade said. — VDS/BM, GMA News