The Land Transportation Franchising and Regulatory Board (LTFRB) assured commuters that there is no basis to implement a fare hike as the government’s Public Utility Vehicle Modernization Programs (PUVMP) concluded the first phase of its implementation, which is the consolidation of operators into either a cooperative or corporation.
LTFRB chairman Teofilo Guadiz III said all fare hikes undergo a series of deliberations and consultations in order to find out if there is a compelling reason to approve it.
In past cases, the usual fare hike approval was due to oil price hikes.
‘Fare increases should undergo thorough study and multiple consultations with concerned agencies. A petition for a fare increase must go through the proper process of the LTFRB Board,” said Guadiz.
“Several factors such as inflation and cost of fuel must be considered before the agency approves a new fare increase,” he added.
Guadiz issued the statement amid speculations of fare increase as a result of the PUV Modernization.
Transport and labor groups earlier raised concerns that the PUV Modernization Program would pave the way to fare increase since operators have no other means to cover the monthly amortization for modern jeepneys, as well as the maintenance costs.
While the government assures that road worthy traditional jeepneys will still be allowed to operate once they agree to be consolidated, the PUV Modernization’s program’s ultimate goal is shift to modern jeepneys.
Transport and labor groups said this is where the problem would start since the expensive modern jeepney, which costs at least P2 million per unit, requires high monthly amortization—and eventually affects millions of workers who rely on traditional jeepneys as the cheapest mode of transportation.
Guadiz, however, said the current minimum fare for traditional jeepneys is still at P13 and P15 for modern jeepneys.
He reiterated that once a transport group files a petition for a fare increase, the LTFRB Board shall conduct an assessment and study to determine its feasibility.
The LTFRB has concluded the consilidation steps after the April 30 deadline. The next steps are route rationalization with the local govenrment units, and fleet modernization.