LTFRB: 'No basis' to immediately implement fare hikes amid PUVMP
MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) said that there is no basis in implementing fare hikes despite the ongoing public utility vehicle (PUV) modernization program.
LTFRB clarified last Friday that current jeepney fares will remain, this after transport group PISTON warned that jeepney drivers might end up demanding a P25 increase in minimum fares to repay loans taken for the purchase of modernized jeepneys.
"[F]are increases should undergo thorough study and multiple consultations with concerned agencies," said LTFRB chairperson Teofilo Guadiz III in a statement.
"[T]he petition for a fare increase must go through the proper process of the LTFRB Board. Several factors such as inflation and cost of fuel must be considered before the agency approves a new fare increase."
Jeepney operators and drivers were earlier given until April 30 to consolidate into cooperatives or cooperatives as part of the PUVMP.
Three years after the deadliine, traditional jeepney units that are "no longer" road worthy would have to transition into Euro-4 enginers or electric vehicles. These typically cost P2 million each unit.
However, some operators found the costs to be too expensive driving them to incur loans. Around 10,000 jeepney units have failed to consolidate nationwide and would have to stop operations by May 15 to avoid a P50,000 fine — on top of a year's worth of driver suspension.
"The current minimum fare for traditional jeepneys is still at P13 and P15 for modern jeepneys," explained Guadiz.
"[O]nce a transport group files a petition for a fare increase, the LTFRB Board shall conduct an assessment and study to determine its feasibility."
The government earlier said that joining cooperatives would enable them to access bank financing and receive government subsidy of between P200,000 to P300,000 per vehicle to ease financial burden.
While drivers and operators are in fear of incurring debt and unemployment, mobility advocates such as AltMobility PH urged the government to take action to ensure that commuters don't suffer from lack of public transport options as thousands of jeepneys are now deemed colorum under the PUVMP.
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