The excitement over the onset of the "ber months" will likely be ruined in the first or second week of September after the Land Transportation Franchising and Regulatory Board (LTFRB) said it would likely approve the fare hike petition of the groups of public utility jeepneys (PUJs).

But as to how much would be the new minimum fare is still the subject of the deliberation of the LTFRB, according to its chairperson Cheloy Velicaria-Garafil."We acknowledge that there is a need for fare increase due to the series of big-time oil price hikes, especially on diesel. This is also acknowledged by the other sectors which include commuter groups," said Garafil.

Despite the series of rollbacks for at least one month, oil companies have again implemented a big-time diesel price hike, over P6 per liter.

The LTFRB has granted an P2 provisional increase for the minimum fare of PUJs which was implemented last month. This made the minimum fare hike currently at P11. But there was no increase in the succeeding kilometer after the four-kilometer travel which is covered by the minimum fare.

PUJ groups are seeking P5 to P6 increase in minimum fare.

Garafil said the earliest that the LTFRB would release the resolution for PUJ fare increase is on the first week of September, the latest would be in the second week, especially that they already received the position paper of the National Economic Development Authority (NEDA) on the matter.

Based on the position of the NEDA, the minimum fare hike increase for PUJs will have a 0.3 percent inflationary effect for every P1 increase.

This is the reason, according to Garafil, why they have been studying the amount of the minimum fare increase which the LTFRB could grant to the PUJ drivers and operators.

"While we acknowledge that there is a need for fare increase on PUJ, we also have to consider other factors that include its impact on the economy and the purchasing power of the communters," said Garafil.

A transport group earlier said that there is already an existing memorandum of the LTFRB which specify the formula on the computation of the fare increase. According to the group, the same formula states that the minimum fare hike this time should have been at P16 for PUJs.

But Garafil said the memorandum that the group was referring to, the Memorandum Circular No. 2019-035, was issued before the pandemic and is not suitable in the current economic condition of the country. She argued that the same memorandum also specified that the formula could be set aside in case of emerging socio-economic conditions that include the Covid-19 pandemic.

The Philippines inflation rate for the month of June this year was at 6.1 percent, according to the Philippine Statistics Authority which also said that the P1 in 2018 only amounted to P.087 as of June 2022.

Considering the 0.3 percent inflation effect per every P1 increase in fare hike based on NEDA position paper, Garafil said that there would be a significant effect if the pre-pandemic formula is followed.

"These factors will serve as our basis to come up with the very reasonable and balanced fare hike," said Garafil.