Train Law effect: P10 minimum jeep fare in Western Visayas awaits approval

ILOILO CITY—The Land Transportation Franchising and Regulatory Board (LTFRB) in Western Visayas has endorsed for approval by its head office an increase in minimum fare for jeepneys to as much as P10 from the current P6.50.

The LTFRB regional office approved the petition of transport groups for the fare increase as a result of fuel price hikes brought about by fluctuations in peso-dollar rates and the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

Raymundo Parcon, head of Iloilo City Loop Alliance of Jeepney Owners and Drivers Association (Iclajoda), said the proposed fare hike was up for review by the LTFRB central office for approval or rejection.

More taxes, higher prices

Iclajoda earlier filed a petition seeking a P12 minimum fare.

Under TRAIN, the centerpiece tax reform law of the Duterte administration, an additional excise tax of P2.50 per liter was added to diesel which is used by jeepneys.

The additional taxes were also expected to raise prices of vehicle parts which would prompt jeepney operators to increase rent collected from drivers.

The Panay Consumer’s Alliance and Bagong Alyansang Makabayan  in Panay said they were supporting a “reasonable” increase in jeepney fare to P8.50 and up to P9 to help drivers earn income close to that of minimum wage earners.

Drivers said the current P6.50 minimum fare was pegged at the 2016 price of diesel, which was P22 per liter, and allowed drivers to earn an average of P230 daily.

But since diesel now costs at least P39 per liter and minimum fare still pegged at P6.50, “our drivers are earning only P78.90 daily,” said the groups in a position paper.