MANILA, Philippines – Taking a route that would allow its immediate implementation this week, Malacañang yesterday approved fare increases of P1 for public utility buses and jeepneys and P10 for taxis.
Socio-economic Planning Secretary Augusto Santos told a news briefing at the Palace that the National Economic and Development Authority (NEDA) board, chaired by President Arroyo, approved the fare increase after a presentation by the Land Transportation Franchising and Regulatory Board (LTFRB) during the Cabinet meeting yesterday.
The process was a departure from the usual procedure of hearings and counter-proposals from the transport industry, government and other sectors during applications for fare hikes that take weeks to be resolved and are sometimes accompanied by nationwide transport strikes.
Santos, however, justified the move, saying that under the law, fare hikes can be considered “increases in fees and charges that can be approved by the NEDA board.”
The fare increase was approved as fuel prices continue to soar. Pump prices have increased 18 times for a total of 35 percent since January.
“These (transport fare increases) are what we call second-round effects of inflation. The cost of transportation is a big element in the Filipino family’s consumption basket,” Santos said.
LTFRB chairman Thompson Lantion told the news briefing via teleconference that the fare hikes would take effect either on Thursday or Friday.
He said fare adjustments for public utility jeepneys for the first four kilometers is P1 from the base of P7.50 for a new fare of P8.50. An additional 25 centavos will be put on the existing P1.50 for every succeeding kilometer.
For ordinary buses, the increase would be P1 for the first five kilometers on top of the existing P9 minimum fare for a new total of P10.
An additional 20 centavos would be put on top of the existing P1.75 for every succeeding kilometer.
Air-conditioned buses, Lantion said, would have fare increases 20 percent higher than the new rates for ordinary buses.
He said for jeepneys already charging P8 for the first four kilometers, the increase would only be 50 centavos.
Taxi fares would have a fixed P10 increase regardless of the total fare and would not be added to the flag-down rate so that there would be no need to recalibrate meters.
He said the fare increases for taxis and jeepneys would be nationwide and for buses would be effective only in Metro Manila.
Bogus groups, beware
Lantion yesterday warned transport groups, particularly pseudo jeepney associations, against riding on the current oil crisis by filing petitions with forged signatures before the agency.
“We will cite for contempt any bogus jeepney group who will file a petition with the LTFRB,” Lantion told The STAR.
The LTFRB top honcho was reacting to the statement of Efren de Luna, president of the Alliance of Concerned Transport Organizations (ACTO), that they will be filing a P12 fare hike increase today with the LTFRB.
He said ACTO cannot file a petition since it is not recognized as a legitimate jeepney organization because it has no organizational setup and is not registered with the Securities and Exchange Commission (SEC).
He said they already checked with SEC and found that ACTO is not a registered group.
Lantion challenge ACTO to submit a list of its officers and the SEC registration with the LTFRB so they will be recognized as a legitimate transport group.
“The LTFRB will only entertain petitions from legitimate transport groups with legitimate members, we cannot allow colorums to mess with the current oil crisis,” he said.
The LTFRB chairman cited a recent petition filed by an umbrella transport group, which turned out to be fictitious because the signatures were forged.
Upon discovery, the petition was withdrawn.
Lantion said the only pending petition with his office is the provisional increase of P1 filed by jeepney and bus operators and the conditional tip filed by taxi operators.
The LTFRB will make its recommendation and submit it to NEDA for final approval.
Pyrrhic victory
Meanwhile, the Pinagkaisang Samahan ng mga Tsuper at Opereytor Nationwide (PISTON) said it welcomed the NEDA announcement approving the fare hike petition it filed in October 2007.
George San Mateo, secretary-general of PISTON, said the grant of P8.50 minimum jeepney fare nationwide would be a considerable benefit for jeepney drivers and operators especially those outside Metro Manila where the basic jeepney fare was lower than the P8 prevailing rate in the National Capital Region.
“This is a big deal especially those outside Metro Manila such as in Cebu or Bacolod or in other provinces where the fare rate is at around P6.50,” San Mateo said.
But with the price of diesel now at around P54 and unleaded gasoline at more than P60 per liter, San Mateo said that the fare hike was still not enough to help transport groups cope with the weekly oil price hikes.
“We will not ask for any more fare hikes. Instead, we’ll vigorously push for the scrapping of the 12-percent VAT on oil. And we’ll also lobby for the scrapping of the Oil Deregulation Law,” San Mateo said.
He added that he also welcomed the announcement last Monday of the plan of ACTO president De Luna to focus efforts on the lobby for the scrapping of the 12-percent VAT on petroleum products.
“We welcome Ka Efren and ACTO’s decision. It shows that we are now one in calling for the removal of VAT,” San Mateo said. — Perseus Echeminada, Rainier Allan Ronda