The Land Transportation Franchising and Regulatory Board (LTFRB) on Thursday said it will review the recent fare increase for public utility jeepneys (PUJs), however, they added that the fare hike will still be implemented.
“We will follow the guidance and instruction of Secretary (Arthur) Tugade. The review will be done,” LTFRB Chairman Martin B. Delgra III said in a statement.
READ: DOTr to ask LTFRB to review jeepney fare hike
“It will include a formula by which fare hike is reviewed, and correspondingly adjusted based on consumer price index (CPI) and movement of fuel prices,” he added.
Meanwhile, pending review, the decision will be implemented, LTFRB noted.
“It will also include consultation, thus, a process. An output of the review would be a formula to determine fare,” it added.
The LTFRB will implement the fare hike starting November 2.
It will raise the minimum fare at P10 in the National Capital Region, Region 3, and Region 4.
Earlier, Tugade has suggested that the LTFRB come up with a parametric formula so that fare adjustments will become automatic rather than rely on petitions.
“The LTFRB, having jurisdiction to set fare rates for all types of land-based public transport, is mindful of its public responsibility to strike a delicate balance between ensuring the viability of public transport providers to provide such service, while protecting the interest of the riding public against unreasonable and excessive fares,” Delgra said.
He noted that the fare setting has been “a contentious issue between competing yet indispensable interests.”
“The riding public’s need for a reliable and safe public transport and the private sector which provide them,” he said.
“And where public interest is at stake, government makes sure that such public service shall continue uninterrupted,” he added.
Too often, according to Delgra, fare setting is sought to offset operating and other maintenance cost in providing public transport service.
He said that a fundamental remedy in addressing this issue is through the PUV modernization program, which will result not only to lower cost of providing such public service but ensure a reliable safe and convenient public transport to millions of commuters. /je