LTFRB junks petition against bus, jeepney fare hikes

Fare increases in public utility jeepneys and buses will push through next month after the Land Transportation Franchising and Regulatory Board (LTFRB) junked the petition of a commuters group to stop its implementation.

In its Order dated October 30, the LTFRB denied the Motion for Reconsideration filed by Arlis Acao and Rodolfo Javellana, Jr. of the United Filipino Consumers and Commuters as it “failed to present new issues for the Board to reconsider its earlier findings.”

The LTFRB noted that the issues raised by the oppositors “had already been passed upon by the Board in resolving the instant petition for fare increase as the same issues raised by opposition Acao filed on 13 June 2018.”

Based on the order, the Board added that it considered Javellana as “having no personality to oppose in the instant case” for appearing only after the LTFRB released its decision on fare increase despite several hearings it conducted.

The decision also cancelled the supposed hearing on the issue on Tuesday following the release of the order.

Acao and Javellana stated in their appeal that the fare hike will burden more the commuters on top of rising prices of commodities, and that the operators and drivers are already earning “good income.”

The oppositors’ appeal was filed at the LTFRB on October 23, five days after the Board released its decision approving a R10 minimum fare for PUJs in Metro Manila and Regions 3 and 4, in relation to the petition filed by transport groups in September, 2017.

Transport regulators also granted a provisional fare hike of R1 to commuter buses in Metro Manila, and an additional R0.15 per kilometer charge for provincial buses.

The fare increases on PUJs and PUBs came at the heels of rising pump prices and runaway inflation which petitioners said are heavy burden to them.

With the LTFRB's order to deny the motion, the fare hikes will take effect on the first week of November.

Opposing views The Order released to reporters on Tuesday was penned by all the members of the Board with a supplemental concurring opinion by LTFRB Chairman Martin Delgra III, and a dissenting opinion by Board Member Aileen Lizada.

In a copy of Lizada's dissenting opinion, she said that the oppositors, especially Javellana, should be given ample time to be heard in court.

“Why the haste? Why deny the stakeholders opportunity to be heard,” Lizada stated.

She also maintained that the Board should consider the recommendations of the National Economic and Development Authority when deciding on fare hike petitions.

In a letter from NEDA, addressed to Chairman Delgra dated October 2, it recommended the Board to enact a fare hike once the government's fuel subsidy program has been fully implemented, and to partner up with oil companies in providing fuel discounts for jeepney drivers.

The agency stated that based on their estimates, LTFRB's proposed provisionary increase will “slightly pushed the country's annual inflation up by 0.076 percentage points in 2018, if implemented starting October.”

NEDA also told the Board to be “wary of fuelling further inflationary expectations” and push for alternative measures to counter the effect of higher crude prices this year.

The country's independent economic and development planning agency also cautioned the LTFRB that fare hikes would reduce the purchasing power of workers who rely on public transportation which will result in stronger calls for wage hike for the government.

"This office should be the refuge of those who have less in life. This Board owes them a judicious and thorough procedure where everyone is given an opportunity to be heard and not bar them by mere technicalities," Lizada added.

Delgra's response

But Delgra said the Board has given enough opportunity for the commuters to discuss the fare hike petition in court.

He explained that at least eight hearings were held after the petition for fare increase was filed in September, 2017 wherein only two from the commuters group participated, including Acao and the National Council for Commuters Safety and Protection.

Delgra also added that the findings of NEDA are “by no means conclusive or binding upon the Board, but rather, merely opinion for which the latter has seriously considered.”

But Delgra reiterated that interests of the riding public and the transport groups have been carefully considered before coming up with the decision.