LTFRB: Fare rollback possible if fuel prices drop, stabilize

A rollback in public utility vehicle (PUV) fares is possible if fuel prices drop or stabilize in the coming months and a petition is filed, Land Transportation Franchising and Regulatory Board (LTFRB) Acting Chairman Greg Pua Jr. said Monday.

“We will evaluate that and see if anyone files a petition to lower the fare,” Pua said on Bagong Pilipinas Ngayon.

“It’s been done before. It happened in 2018 when fuel prices dropped significantly, and the LTFRB also reduced fares,” he added.

With the approval of the Department of Transportation, a fare increase took effect on September 28, raising the minimum fare for traditional jeepneys to P14 and for modern jeepneys to P17.

The fare hike came after transport groups called for higher minimum fares to help drivers cope with rising fuel costs amid the conflict in the Middle East.

Pua said the LTFRB also considered the P60 minimum wage increase recently approved by the Department of Labor and Employment (DOLE).

“We have a recently implemented wage increase for workers, and that was a major consideration for us,” Pua said.

Pua said the LTFRB also sought to balance the interests of transport workers with the financial burden on commuters.

“We look at factors that will help commuters afford the fares so the increase will not be too burdensome for them,” he said.

Based on LTFRB estimates, PUV drivers could take home at least P1,200 a day now that the fare hike is in effect and the rollout of the P12-per-liter fuel discount remains ongoing.

Pua said a 2009 study showed that traditional jeepneys carried an average of 300 passengers daily. Multiplying this by the new minimum fare results in P4,200 in daily gross revenue.

After deducting P3,000, the estimated amount jeepney drivers spend on fuel each day, the resulting daily net income would be P1,200, the LTFRB said.

The agency noted that the figure could vary, as passengers traveling longer distances would pay more than the minimum fare.— MCG, GMA News