DAVAO CITY – The provisional P1 jeepney fare increase effective last October 8 will not help alleviate the conditions of the Public Utility Jeepney (PUJ) drivers in the Philippines amid increasing cost of fuel, transport group Transmission-Piston said.

Larry Arguilles, spokesperson for Transmission-Piston, said that the implementation of a fare hike does not address the issues confronting the transportation sector.

A SIGN inside a traditional passenger jeepney in Manila reminds commuters of the new P13 minimum fare effective Sunday, October 8. (Arnold Quizol)

He said that instead of addressing the concerns of the PUJ drivers, the government failed to address the “root cause of the high fuel cost” by failing to “regulate” the oil industry that is being controlled by large corporations with the implementation of Republic Act 7489 or the Downstream Oil Industry Deregulation Act of 1998.

“Because of RA 7489 of 1998, the government became inutile in regulating the oil industry. In other words, the fare increase does not provide a solution to the difficulty being felt by the transportation sector,” Arguilles said.

He said that the provisional fare hike only burdens commuters and fails to help PUJ drivers.

Arguilles said their group is calling for the suspension of excise tax and Value-Added Tax on petroleum-based products.

He expressed frustration that the government’s response to their call was only a provisional fare hike amid the increasing oil prices, basic commodities, and spare parts.

Ernest Benz Davila, Legal Officer V of the Land Transportation Franchising and Regulatory Board (LTFRB)-Davao, said during the Kapehan sa Dabaw on Monday, October 9, that PUJ drivers are authorized to charge P1 for the first four kilometers but no increase in the succeeding kilometers.

Davila said jeepney fare has been adjusted from P12 for the first four kilometers to P13.

He said since it is provisional, the LTFRB-Davao will only encourage the PUJ operators to get the latest fare matrix.

In a four-page order, the LTFRB cited fuel increases to support its decision to grant a nationwide provisional fare increase.

“The steady rise of prices of fuel, a major component in the operation of public utility vehicles, has brought another challenge to keep our public transport services running. Operators and drivers must continue to operate the PUJ services for the benefit of the riding public,” the agency said.

It added that while the “Board recognizes the plight of the Filipino people every time an increase in the price of commodities occurs, including the cost of public transport, it cannot be insensitive to the clamor and plight of the PUV operators and drivers who are responsible in ensuring a steady supply of public transport services.”