DoTr to ask LTFRB to review latest fare hikes

October 31, 2018

The Department of Transportation (DOTr) will ask the Land Transportation Franchising and Regulatory Board (LTFRB) to review the recent fare increase for public utility jeepneys due to a decline in world oil prices.

The latest fare adjustment pegs the minimum fare at P10 in the National Capital Region, Region 3, and Region 4. A commuter’s group appeal to stop the increase was denied by LTFRB.

“We will recommend for the LTFRB to review the fare increase. In the meantime, however, since there is already a decision, LTFRB can still implement the increase pending the review,” said OIC-Undersecretary for Road Transport Mark De Leon.

The LTFRB will implement the decision starting November 2 pending review.

In a press briefing Wednesday, DOTr Secretary Arthur Tugade said fare increases should be based on a pre-determined matrix, where there will be clear guidelines when fares should be increased or lowered.

The DOTr will instruct the LTFRB to come up with a parametric formula so that fare adjustments will become automatic rather than rely on petitions.

Tugade set as an example the matrix being used in the air sector, where rate adjustments for fuel surcharges are based on the price of fuel per barrel and the consumer price index.

He said the matrix, not the petition, will be subject to discussions and deliberations.

“That matrix is not unilateral, that is the one subject to hearing. Once this is agreed, it will be smooth sailing,” explained Tugade. DMS