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MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday, March 25, rejected the provisional P0.50-minimum fare hike sought by transport groups.
LTFRB chairman Winston Ginez said the proposed rate hike lacked merit, based on verified data from a leading oil fuel company and from the Department of Energy (DOE).
Ginez said that under Section 16 (c) of the Public Service Law, the LTFRB is duty-bound to balance the rights of the commuting public and the rights of the operator-grantee.
“We are aware that any fare adjustment creates a direct effect in the rise of cost of living, which in return affects both the commuting public and goods being transported,” he explained.
Ginez also warned jeepney drivers against defying the order, saying the LTFRB “we will be forced to impose sanctions on transport groups that will defy the Board’s order not to increase minimum fares.”
He said the LTFRB considered various factors in its decision, particularly the movement of oil prices.
He cited the report of Petron Corp at a public hearing in February, which showed that diesel prices in Metro Manila did not breach the P45 per liter level between May 2012 and Jan 4, 2013.
Data from the DOE also showed that the price of diesel remained below the P45 per liter level between September and December 2013.
The series of oil price rollbacks implemented by oil companies brought the year-to-date net price reduction for the week of March 18, 2014 onwards to P1.35 per liter.
The LTFRB granted a provisional P0.50-increase in jeepney fares on March 20, 2012, after diesel prices hit P57 per liter. It recalled the order on May 14, 2012, when diesel prices fell below P45 per liter.
Ginez also said the LTFRB will continue marathon hearings on the transport groups’ petition for a jeepney fare increase on March 28, April 4 and 11, 2014.
On December 11, 2013, various transport groups filed a petition with the LTFRB seeking to increase the current P8-minimum fare to P10 and an additional P0.35 for every succeeding kilometer in Metro Manila and Regions III and IV.
The groups are the Alliance of Concerned Transport Organization (ACTO), Federation of Jeepney Operators and Drivers Association of the Philippines (FEJODAP), Pangkahalatang Sangguniang Metro Manila and Suburb Association (PASANG-MASDA), Alliance of Transport Operations and Drivers Association of the Philippines (ALTODAP), and the Liga ng mga Tsuper at Operator sa Pilipinas, Inc. (LTOP).
On February 15, the transport groups filed a motion for a P0.50-provisional fare increase for the first 4 kilometers. – Rappler.com
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