LTFRB OKs fare hike for MM, provincial buses

The Land Transportation Franchising and Regulatory Board (LTFRB) yesterday approved a provisional fare increase for city and provincial commuter buses that will start on the first week of November.

In an eight-page order dated Oct. 17, the board granted the joint petition for fare hike filed last February by the Southern Luzon Bus Operators Association, Nagkakaisang Samahan ng Nangangasiwa ng Panlalawigang Bus sa Pilipinas and Samahang Transport Operators ng Pilipinas Inc.

The LTFRB approved an increase of P1 in the minimum fare for buses with routes in Metro Manila.

This means the first five kilometers for ordinary and airconditioned buses will now be at P11 and P13 respectively, up from P10 and P12.

There will be no increase in the fare for the succeeding kilometers.

For provincial buses, there is no increase in the minimum fare but the LTFRB granted a hike from P1.40 to P1.55 for every succeeding kilometer for ordinary buses and from P1.60 to P1.75 for air-conditioned buses.

The order was signed by LTFRB chairman Martin Delgra III and board members Ronaldo Corpus and Aileen Lourdes Lizada. It will be implemented 15 days after publication in a newspaper of general circulation, or in the first week of November.

The board granted the petitioners’ request due to the rising prices of fuel. It also pointed out the last fare in- crease for public utility buses was in March 2011.

“While the board recognized the plight of the Filipino people every time an increase on the prices of the commodities occurs, it cannot be insensitive to the present clamor of stakeholders in public land transportation services for necessary action relative to fare rates,” the LTFRB said.

The board earlier approved the increase to P10 the minimum fare for commuter jeepneys, which will also take effect first week of November.

In an interview over dzBB, Delgra warned operators and drivers who will immediately impose the new fares on commuters would face penalties.

“The decision is very clear that it will only become effective 15 days after it is published,” he said.

Presidential spokesman Salvador Panelo said the people have no choice but to take the brunt of the decision of the LTFRB to allow the increase of the fare for jeepneys and buses.

“We really have to take the brunt for now. But if you noticed, there have been changes in the prices in the market, they’re slowly tapering. So, I think the economic managers are correct in saying this is not permanent,” Panelo said during the press briefing in Malacañang yesterday.

He also explained that any move to remove excise tax on fuel needs to comply with the conditions under current laws, contrary to the earlier statements that the President has approved the lifting of excise taxes to ease the burden of the people.

“Hindi naman, di ba we said that, under the law there are certain conditions that have to be complied with. We cannot do without complying with those conditions,” he said.

“The order to suspend is there provided that the conditions will exist during that period,” Panelo said.

LTFRB member Lizada said the regulatory body should have carefully studied all possible scenarios before it approved the fare hike for jeepneys due to its impact on inflation and the commuters.

In a five-page dissenting opinion, Lizada said the decision by a majority of the board in increasing the base fare to P10 will have a negative impact to around four million jeepney commuters.

For Lizada, the LTFRB should have taken more time before arriving at a decision following a letter from the National Economic and Development Authority (NEDA) last Oct. 2 on the possible effects of the regulatory body’s proposed increase.

She said NEDA warned them the increase will slightly push the country’s annual inflation up by 0.076 percentage points in 2018 starting October, which will result in even higher inflation next year.