Transport groups appeal for P2 fare hike

Transport groups file a fare hike petition to the Land Transportation Franchising and Regulatory Board asking for a P2 increase in the minimum fare, covering first 4 kilometers of trip, of PUVs nationwide. pic.twitter.com/kNUkMRERYH

— Ted Cordero (@Ted_Cordero) August 11, 2023

Several transport groups on Friday appealed before the Land Transportation Franchising and Regulatory Board (LTFRB) to increase fares across different modes of public transportation all over the country amid rising fuel costs.

In a letter to LTFRB chairperson Teofilo Guadiz III, Liga ng Transportasyon at Operators sa Pilipinas, Pagkakaisa ng mga Tsuper at Operators Nationwide, Stop & Go Transport Coalition, and the Federation of Jeepney Operators and Drivers Association of the Philippines “request for fare increase nationwide.”

The transport groups are seeking the LTFRB’s thumbs up for a P2 fare increase “for the first four kilometers.”

“The immediate action and consideration of the good chairman of the LTFRB on this matter will go a long way in uplifting the economic conditions of the drivers and operators,” the groups said.

The groups said that prices of parts and TBAs (throttle body alignment) “needed to ensure safe and comfortable transport service have tremendously increased.”

“Likewise, i.e. diesel etc. is becoming uncontrollable in surge of prices every week,” they said.

Just this week, diesel prices went up by P4 per liter, marking its fifth straight week of increase. 

Oil companies also increased gasoline and kerosene prices by P0.50 and P2.75 per liter, respectively.

“It is in this context that different national organizations represented by their respective national leaders are filing this petition/request for the necessary increase of fare for passengers utilizing the different modes of public transport services,” the groups said.

In a phone interview, LTOP president Orlando Marquez told GMA News Online that the fare hike appeal would be for jeepneys, buses, and UV Express.

Marquez said that the groups opted to submit a letter instead of a petition because of an existing automatic fare adjustment policy under the LTFRB’s Memorandum Circular No. 2019-035.

Under the circular, the fare adjustment formula would 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.

Marquez cited Section 4 of the MC 2019-035, which states that the LTFRB shall, without need for public hearings and other special proceedings, increase or rollback the fare “whenever such change occurs in fuel price.”

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.

In September last year, the LTFRB approved the fare increases for traditional and modern jeepneys, buses, taxis, and transport network vehicle services (TNVS).

The public land transportation regulator approved a P1 provisional increase in the minimum fare for first four kilometers travel in both traditional and modern jeepneys.

For public utility buses (PUB), the land transportation regulator approved a P2 uniformed base fare hike for city and provincial buses for the first five kilometers and the succeeding kilometer fare increase of P0.35 to P0.50 depending on the type of bus.

The flagdown rate for taxis and TNVS was also adjusted upwards by P5.00. — RSJ/VBL, GMA Integrated News