MANILA, Philippines - A 50-centavo fare cut on public utility jeepneys will take effect tomorrow following the recent hefty rollback of fuel prices.
Land Transportation Franchising and Regulatory Board member Ariel Inton said the LTFRB had approved in principle the petition for a jeepney fare reduction filed yesterday by transport groups.
The LTFRB approval is expected to be formalized today.
Inton said the 50-centavo fare cut is effective only in Metro Manila, Central Luzon and Southern Tagalog.
He said jeepney drivers must observe the fare adjustments, but added it is only provisional.
“We would like to remind drivers to follow this scheme, otherwise they will be charged for overcharging,” Inton said.
He added passengers should report jeepney drivers who refuse to implement the fare reduction.
Inton, however, clarified they did not have an adjustment on the succeeding kilometers.
Malacañang earlier assured the public that the LTFRB would come up with a very reasonable minimum fare for public transport amid calls for a substantial fare reduction following a series of oil price rollbacks.
LTFRB chairman Winston Ginez said the board would try to find a “win-win” solution for both commuters and public utility vehicle operators.
ACTO president Efren de Luna, who filed the petition, said they volunteered a fare reduction as they felt the effect of the big time rollback on oil prices.
Oil companies on Monday announced another price rollback, with gasoline and diesel prices dropping by P1 and P1.45 per liter, respectively, owing to falling world oil prices.
De Luna said the provisional minimum fare would now be P7.00 from P7.50.
De Luna added the Department of Trade and Industry (DTI) should initiate the adjustment on the prices of spare parts, basic goods and services.
He also challenged the Department of Transportation and Communications (DOTC) to implement a fare reduction on the Metro Rail Transit (MRT) and the Light Rail Transit (LRT).
Taxi operators, however, are adamant against a reduced fare.
Bong Suntay of the National Taxi Operators Association said they do not intend to file a similar petition, saying a reduced taxi fare is illogical even if there is a big time rollback because it will still be offset by the heavy traffic in Metro Manila.
Suntay said the fare cut is practical for jeepneys and buses but not for taxis because of the stiff competition from Uber and GrabCar.
The LTFRB approved the operation of Uber and GrabCar despite the existing moratorium on the issuance of franchise, saying that they are a different category of transport system. – Delon Porcalla