DOTr orders P1 rollback in jeepney fares

MANILA, Philippines — Barely two months after allowing a P1 hike in the jeepney minimum fare, a rollback in the same amount is forthcoming, possibly later this month.

The Department of Transportation (DOTr) has ordered the Land Transportation Franchising and Regulatory Board (LTFRB) to lower minimum jeepney fare by P1 on the back of declining fuel prices. 

The LTFRB issued yesterday a resolution ordering the provisional rollback of the minimum fare from P10 to P9. The fare rollback came a little more than a month after the LTFRB allowed a provisional hike in fare amid skyrocketing fuel prices.

Transportation Secretary Arthur Tugade directed the LTFRB last week to implement a motu proprio fare rollback, citing falling oil prices across the globe.

“We will implement that, and no fee shall be charged for a new fare matrix,” LTFRB chairman Martin Delgra III said.

The motu proprio rollback covers the first four kilometers of PUJ routes for the National Capital Region, and Regions 3 and 4. The order takes effect immediately after publication in a national daily.

The DOTr said the jeepney fare rollback order is on top of Tugade’s previous directive for the LTFRB to establish a formula-driven matrix for fare adjustments.

The LTFRB has resolved to come up with a formula that shall pre-determine fare adjustments, as set by economic indicators such as world market prices of crude oil, foreign currency exchange rate, consumer price index, inflation rate and the financial viability of the public transport system, among others.

A technical working group – to be convened by the LTFRB – will work out a formula for setting fare adjustments.

“I don’t like the situation wherein if there is a request for an increase, there will be meeting, discussion and deliberation. That takes time, and by the time that it is approved, the situation that existed when you are asking for a fare increase is no longer there,” Tugade earlier said.

Tugade’s proposed pre-determined matrix for jeepney fare increases was said to be inspired by the workable fuel surcharge matrix implemented in the air sector.

“Let us move away from the old ways wherein once you are awarded with the increase, the reason for the award is no longer there,” Tugade said.