In a move to strike a good balance between welfare of millions of commuters and the interest of those in the public transportation sector, the Land Transportation Franchising and Regulatory Board (LTFRB), under the guidance of DOTr Secretary Giovanni โBanoyโ Z. Lopez, has approved the petitions of transport groups for a fare increase.
LTFRB Chairman Atty. Vigor D. Mendoza II explained that the computation for the fare hike was thoroughly deliberated and was supported by data and analysis, including that of the Department of Economy, Planning, and Development (DEPDev).
โThis decision that covers all modes of land public transportation is proof of the national governmentโs genuine concern on the welfare of those in the transport sector too while protecting the interest of the general commuting public,โ said Chairperson Mendoza.
โAnd this is timely because the transport sector is currently facing a serious challenge on the prices of petroleum products as a result of the Middle East tensions,โ he added.
Fare adjustments
Based on the decision, the LTFRB approved a P1 increase for the first kilometer or minimum fare, and 20 centavos for every succeeding kilometer for traditional jeepneys (from P1.80 to P2 per succeeding kilometer.
From the existing P13, the minimum fore traditional jeepneys would be P14 which reflects an 8% increase. For the modern jeepneys, the approved increase is P2 which makes the minimum fare P17 from the current P15.
The LTFRB also approved a 10-centavo increase in the succeeding kilometer, or from P2.20 to P2.30 per succeeding kilometer. For airport taxis, the LTFRB okayed a P40 increase in. the flag-down rate, or first 500 meters, making the flag-down rate P115 from the current P75.
While the flag-down rate has increased, the LTFRB noted that there were no changes in the succeeding 300 meter and two-minute waiting time charge.
For the Transport Network Vehicle Services (TNVS), the LTFRB approved a P20 increase and P15 pick-up fare per kilometer.
The increase makes the base fare for TNVS sedan P65 from P45; P75 from P55 for AUVs; P55 from P35 for hatchback and P165 from P145 for premium TNVS.
The LTFRB, however, emphasized that there is no increase in the per kilometer and per minute travel time for TNVS. Chairperson Mendoza also announced a P2 increase for the minimum fare of Metro Manila and city ordinary buses-or from P13 to P15 for the first five kilometers, and 024 centavos for every succeeding kilometer, or from P2.25 to P2.49.
On the other hand, the aircon buses for Metro Manila and city operations will have a P3 increase, or from P15 to P18 for the first five kilometer and 33 centavos increase for every succeeding kilometer, or from P2.65 per kilometer to P2.98.
For ordinary buses with provincial operations, a P1 increase was approved for the first five kilometers but the increase in the succeeding kilometers varies depending on the types of passenger buses.
For ordinary buses, the additional charge is 30 centavos per succeeding kilometer or from P1.90 to P2.20); 35 centavos for airconditioned buses deluxe and super deluxe buses (from P2.10 to P2.45); and, 45 centavos for luxury buses, or from P2.90 to P3.35 per succeeding kilometer.
As for the ordinary taxis and UV Express, Chairperson Mendoza said the petitions for fare hikes have just been filed by transport groups representing them, thus, are still for deliberations.
Overall, Chairperson Mendoza said the fare hike adjustments reflect a 19% increase in fares across all the regions.
Higher maintenance cost
Chairperson Mendoza said they took note of the position papers of various stakeholders, the series of public consultations, and land public transportation cost analysis since the last fare hike for passenger buses since September 2022.
He particularly cited the increase in maintenance and other operational costs from 7.54% during the last bus fare hike in 2022 to 54.29% in 2024. Other factors include the geopolitical tension that include the war in Ukraine and the recent Middle East conflict, as well as the wage increase for workers across the country since the last fare hike in 2022.
โThese compelling circumstances prompted the Board to allow a reasonable rate of increase,โ the decision read.
Chairperson Mendoza explained that the LTFRB decision reflects a 15% increase in fares vs wage increase of 19%, even citing an example on how the fare hike would have a positive impact on the bus operators.
He said that a Manila-Baguio trip with 246 kilometers would now cost P542 against the old rate of P469, which is a P73 difference.
With the new fare hike, he said a 50-seater bus would therefore result in added income of P3,650. Fuel cost on the other hand would increase by P4920 (246 liters x P20/liter increase), assuming a price jump of P20 per liter. It took time before the decision on jeepneys were approved since it is the main mode of transportation in the country and any increase will have an effect on consumer price index or CPI.
In the case of the passenger buses, Chairperson Mendoza said they encountered no complicated issues in resolving the fare increase petition for passenger buses since the Department of Economy, Planning, and Development said passenger buses have a minimal share in the CPI basket with 0.58 percent. He said the new fare adjustment will take effect as soon as the bus operators obtain a fare matrix and post them in their respective units.
Fare hike conditions
But the LTFRB cited conditions for the full implementation, including granting a 20% discount to senior citizens and PWDS, and for studentsโeveryday during school days. The provisional fare hike approval for provincial buses was approved despite the expected distribution of P5,000 fuel subsidy starting next week.
โNotwithstanding the fuel subsidy distribution, the Board is more than mindful of the extraordinary increases in fuel prices currently experienced by PUV operators,โ the decision read.
