Jeepney, bus fares up P1

July 8, 2008

BY WENDELL VIGILIA - THE government approved yesterday a P1 increase in jeepney and bus fares, to take effect as early as tomorrow or Friday.

Because of the unabated increase in cost of fuel, the National Economic and Development Authority board led by acting chief Augusto Santos approved the fare hike petition recommended by the Land Transportation, Franchising and Regulatory Board during the weekly Cabinet meeting with President Arroyo.

The P1 increase means jeepney fare will now be P8.50 for the first four kilometers, with an additional of 25 centavos for each succeeding kilometer.

The LTFRB allowed a 50-centavo provisional fare hike last May 19, which allowed jeepney operators to charge a minimum fare of P8.

For ordinary buses, the new fare is P10 (from P9) for the first five kilometers and 20 centavos for each succeeding kilometer.

As for air-conditioned buses, LTFRB chair Thompson Lantion said these charge 20 percent more than the fare of ordinary buses, with the new minimum rate now between P11.50 and P12.50.

Lantion said provincial buses are not covered by the P1 increase because these were granted a provisional increase last May.

On taxis, Lantion said there will be no additional charges for the flag down rate, but passengers would have to pay an additional P10 over the meter rate.

Lantion said he said does not rule out the possibility that public transport groups like the Pagkakaisang Samahan ng mga Tsuper at Opereytors Nationwide (Piston), the Philippine Confederation of Drivers and Operators-Alliance of Concerned Transport Organization (PCDO-Acto), and the Federation of Jeepney Operators and Drivers Association of the Philippines (Fejodap) might move for another round of fare increase.

Piston has been calling for the lifting of the 12 percent value added tax on oil products and the repeal of the Oil Deregulation Law to fight the rising cost of oil which has already hit $145 per barrel.

Piston is saying a repeal of the VAT on oil will result in a P5.22 reduction in the price of diesel, P6.36 in gasoline and P75 for liquefied petroleum gas.

A liter of gasoline now costs around P61.

Lantion said the LTFRB has submitted its mechanics for the implementation of the proposal to increase the P1 per liter fuel subsidy to public utility vehicles to P2. The subsidy is among measures government is taking to cushion the impact of the spiraling fuel cost.

Santos said the proposal was already approved “in principle” by the Cabinet-NEDA board.

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