LTFRB reminds PUV operators: No unauthorized fare increases

THE LAND Transportation Franchising and Regulatory Board (LTFRB) has warned public utility vehicles (PUVs) against raising fares without government authorization.

LTFRB Board Member Aileen Lourdes A. Lizada issued a statement following a social media post of a UV express service going from Meycauayan, Bulacan, to Quezon Avenue, raising its fare to P50 from P45, citing the Tax Reform for Acceleration and Inclusion (TRAIN) law which is set to increase excise taxes on fuel.

“It has come to our attention that some public utility vehicles (PUVs) are increasing their fare rates on their own without authority from the Board. Let this be a warning to all public utility vehicle operators: you need ( to go) through the process of a fare hike before any increase can be granted,” Ms. Lizada told reporters in a message.

Ms. Lizada noted that there are currently no pending fare- hike petitions from any UV express operator.

Violations for unauthorized fare changes are a fine of P5,000 for the first offense; P10,000 and impounding of vehicle for 30 days for the second offense; and P15,000 plus cancellation of certificate of public convenience ( CPC) where the unit is authorized, for the third offense.

As of October 2017, there are 20,998 total franchises and 22,645 total units for UV express services nationwide. Transport providers have been announcing intentions to raise fares with the impending increase in fuel prices from higher excise taxes on fuel.

Ride- sharing company Grab Philippines ( MyTAXI. PH, Inc.) last week filed a petition for a 5% fare increase in response to the expected increase in excise taxes for fuel, among others, under the new tax reform program.

The Philippine National Taxi Operators Association (PNTOA) also wants to hike its flag down rate to P50 but has yet to petition the LTFRB.

Transport group Pasang Masda also recently said it would seek an additional P4 on top of the P8 base jeepney fare, citing higher excise tax for oil products.

Excise taxes are estimated to increase by P2.50 per liter for diesel, and P7 per liter for gasoline.

Ms. Lizada said last week there would be “no automatic fare hikes” and all requests by transport groups or operators must file their petitions with the LTFRB and go through the process of evaluation.