LTFRB releases circular for automatic fare adjustment system for PUVs

The Land Transportation Franchising and Regulatory Board (LTFRB) has released its circular covering the automatic fare adjustment system for public utility vehicles (PUVs).

Memorandum Circular No. 2019-035, signed by the LTFRB on July 26, establishes an automatic fare adjustment formula, which will serve as a standard for the regulator in adjusting the fares for PUVs.

The factors to be considered in the fare formula are the following:

• the Department of Energy's official report on fuel prices;
• total operating and maintenance costs based on surveys, studies, and investigation conducted by the LTFRB among operators, drivers, and industries in the land transportation service; and 
• the base fare or the prevailing rate before the adjustments are effected by the LTFRB.

The formula will be:

Fare Adjustment = Fare base (1+[Fuel Price] [Fuel Cost Share in Total Operation and Maintenance]) 

The fare formula shall cover all public utility jeepneys, buses, taxis, and UV Express units.

"Once established, a fare matrix will be prepared by the LTFRB. The fare adjustment shall become effective 10 days from publication in a journal newspaper of general circulation  and posting in the LTFRB website and bulletin board in the LTFRB office," the circular read.

The changes in the formula shall be determined by the LTFRB subject to concurrence of the Department of Transportation on the basis of new studies, findings, and other socio-economic factors that may drastically affect the applicability of the formula.

The circular shall take effect immediately following its publication in a newspaper and the filing of three copies with the UP Law Center.

The circular was received by the UP Law Center on July 2, based on the stamp on the document provided by the LTFRB. — BM, GMA News