LTFRB scraps P1 fare hike in jeepney minimum fare

Updated Mar 21, 2022 | Same topic: Latest Consumer Reports

The provisional fare increase is argued to be unreasonable these days.

The Land Transport Franchising and Regulatory Board (LTFRB) denied the provisional fare increase of Php 1.00 for the first four kilometers. This means that the minimum fare in public jeepneys will remain at Php 9 for the first four kilometers.

Two Jeepneys on a Philippine road

PUJ minimum fare remains at Php 9

The Php 1 provisional fare hike petition was filed on January 31 by 1-Utak, Pasang Masda, Alliance of Transport Operators and Drivers Association of the Philippines (Altodap), and the Alliance of Concerned Transport Organizations (Acto). 

Due to the rising fuel prices, the petitioners also appealed for an increase in the minimum fare of Php 9 to Php 14. Reports suggest that diesel products could reach Php 81.10 if global markets continue to increase oil prices. As such, the increase in minimum fare is believed to mitigate the running costs of public utility vehicle (PUV) drivers.

However, the LTFRB explained that it also has to balance the rights of the riding public who mainly use public transport in their daily commute. The National Economic Development Authority (NEDA) backed the said statement by saying that the higher cost of transportation will reduce the purchasing power of the general public.

The government agency continued by saying that operators shouldn’t be ‘insensitive’ every time prices of commodities surge as it will further upset the majority in these challenging times.

Filipino commuters with a bus

Many Filipinos will suffer if the minimum fare is increased

To address the crisis among PUV drivers, the government rolled out programs including the Service Contacting Program and Fuel Subsidy Program. The Service Contracting Program aims to continually provide PUV drivers financial support regardless of the number of passengers they had during their trip.

Meanwhile, the Fuel Subsidy Program provides a fuel subsidy amount of Php 6,500 to PUV drivers and operations. A total of 377,433 beneficiaries are said to receive the fuel subsidy. In the latest report of LTFRB, the government agency announced that it has disbursed around P700-million including public jeepney drivers (PUJs).

The petition to increase the minimum fare will continue for another round as the Liga ng Transportasyon at Operators sa Pilipinas (LTOP) is seeking a Php 6.00 increase or 66 percent from the base price. LTFRB has ordered a hearing on March 22 where petitioners will be asked to present supporting evidence to justify the increase.

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Rex Sanchez

Rex Sanchez

Author

Rex Sanchez grew up in Saudi Arabia where he saw and got into the automotive scene. He started his career for an aviation company in the said region, writing about turbines and rotors which are later distributed for educational purposes. And now, he joined Philkotse.com as a staff writer. Currently, he is the youngest on the team and is more than ready to grow in the field.

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