LTFRB junks transport groups' P.50 fare hike bid

MANILA, Philippines - The Land Transportation Franchising and Regulatory Board on Tuesday denied the request of several public utility jeepney operators for a P.50 provisional increase for the minimum fare due to lack of merit.

In an order, the LTFRB junked the motion filed last February by Alliance of Concerned Transport Organization, Federation of Jeepney Operators and Drivers Association of the Philippines, Pangkahalatang Sangguniang Metro Manila and Suburb Association, Alliance of Transport Operations and Drivers Association of the Philippines, and the Liga ng mga Tsuper at Operator sa Pilipinas Inc. requesting for a provisional increase for the first four kilometers.

On Dec. 11, 2013, the transport groups also filed a petition asking to increase to P10 from the current P8 for the basic fare, and an increase of P0.35 for every succeeding kilometers in National Capital Region and Regions III and IV.

LTFRB chairman Winston Ginez said the Board based its decision on verified data provided by a leading oil fuel company and from the Department of Energy.

"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," Ginez said.

Ginez said the Board also considered the cost of fuel, citing that in a report by oil player Petron Corp. that shows that prices of diesel in Metro Manila since May 2012 until January 4, 2013 have not breached the P45 per liter level.

On March 20, 2012, the Board granted a provisional P0.50 increase on jeepney fare when the diesel fuel price reached P57 per liter. It granted that fare increase and recalled the Order on May 14, 2012 when the diesel prices was reduced to P45 level.

Another data from the DOE also showed that from September to December 2013, prices of diesel fuel remained below the P45 per liter level.

Earlier this month, a series of rollback on fuel prices was announced by various oil companies, and as of Mar. 4, 2014, had effected a decrease of P0.30 per liter on diesel fuel. Last week, oil firms again reduced fuel prices due to downward adjustments in the international market, with diesel prices trimmed by an additional P0.70 per liter.

With the series of oil price reduction, the year-to-date net decrease for the week of March 18 onwards for diesel is pegged at P1.35 per liter, the LTFRB said.

Meanwhile, Ginez added that the Board will continue their marathon hearings on the transport groups'  petition for fare hike on March 28, April 4, and April 11.

"Batid namin ang kalagayan ng ating mga jeepney drivers, pero we appeal to them to follow our decision, otherwise we will be forced to impose sanctions on transport groups that will defy the Board’s order not to increase minimum fares," Ginez said.