LTFRB wary of jeepney ‘surge pricing’ petition

Should the recent bid by a group of jeepney operators to introduce a “surge pricing” scheme for the most commonly used form of transport in the country succeed, it could trigger similar petitions from other public utility vehicles (PUVs).

For this reason, the Land Transportation Franchising and Regulatory Board (LTFRB) must first determine whether it was “truly necessary” for jeepney operators and drivers to impose an additional charge during rush hour or simply allow them to raise their base fares.

“While we do understand their situation, we need to strike first a balance…between the considerations of the riding public and the ability of our drivers to operate under the current pay scheme,” LTFRB Board Member Aileen Lizada told the Inquirer over the weekend.

More copycats

“When you talk about the jeepney, you are talking about 3.5 million Filipinos who ride this mode of transport…. If we [LTFRB] allow for such a feature, what will prevent other denominations from asking [for] the same?” she said.

Last week, a group of jeepney operators plying routes in Marikina and Quezon City filed a petition for a P2 fare hike and a P1 “surge pricing” adjustment during peak hours.

In a nine-page petition, 22 operators who had already switched to jeepney units compliant with Euro-4 emission standards said the current base fare — P8 for the first four kilometers — was no longer enough to cover their operating expenses due to rising fuel prices and daily heavy traffic.

“What we’re seeing here now is a unique (confluence of factors). Before, pump prices were the primary consideration for fare hike petitions; now, the cost of traffic is becoming part of the equation,” Lizada said. “It’s become complicated.”

Vigor Mendoza, the lawyer of the 22 operators, said the petition would cover only those who were already using Euro-4 jeepneys.

Rush hour rate negligible

He added that the economic effect of a rush hour rate would be “negligible,” especially since less than a thousand drivers nationwide were already compliant with the government’s  modernization program.

But Lizada pointed out that  hundreds more were expected to follow suit with the program’s full implementation within the year.

Currently, only TNCs like Grab and u-Hop impose surge pricing schemes on their passengers and set their own fare matrices.

Transport group Piston leader George San Mateo, however, questioned the petition for a surge pricing scheme for jeepneys, saying it would only make life harder for the poor.

He said the government should instead bring down pump prices to P36 per liter to make the current P8 fare sustainable.