MANILA, Philippines – The Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday said it is studying and eyeing the implementation of an automatic fare adjustment system for public utility jeepneys (PUJs) in the second quarter of 2019.
LTFRB chief Martin Delgra said that the agency is still in the process of consulting transport groups to assess the financial viability of an adjustable fare matrix.
He explained that a proposed formula for the fare system would be the “change in the fuel price multiplied by the operating costs over income.”
“We would expect that we would be able to have that (by Q2). Binubuo lang natin yung data,” Delgra said in a press conference.
He explained that adjustments on jeepney fares would be triggered by the change in fuel price.
“‘Yung magti-triger ng adjustment ay yung fuel price,” the LTFRB chief said.
He said a technical working group comprised of officials from the Department of Energy (DOE), Department of Trade and Industry (DTI), National Economic and Development Authority (Neda) and the Department of Finance (DOF) proposed the new system.
The LTFRB chief said it will also look at the impact of the adjusted fare on commuters, saying the adjustment of fees should “balance the interests” of transport groups and commuters.
“Tinitingnan din yung impact dun sa mga mananakay. It’s about having to balance the interest between financial viability of the transport group as against doon sa transport cost doon sa mananakay,” Delgra said.
In 2018, jeepney transport groups asked for a P10 minimum fare, which was approved by the LTFRB in November.
READ: LTFRB approves P2 jeepney minimum fare increase
After a month, however, the minimum fare was provisionally reduced to P9 as fuel prices declined./ gsg
READ: LTFRB orders P1 provisional rollback on jeepney fare