Transport leaders oppose proposed fare reduction

CEBU, Philippines —  Transport leaders in Cebu are opposed to a memorandum issued by the Department of Transportation (DOTr) directing the Land Transportation Franchising and Regulatory Board (LTFRB) to lower by at least P3 the minimum fare for public utility vehicles amid the recent oil price rollbacks.

They are backed by no less than LTFRB-7 regional director Eduardo Montealto, Jr. who believes that it is still premature to reduce the minimum fare considering the fuel prices are not yet stable. 

 “Pero it is up to our Central Office and DOTr unsa ilang decision, we will just follow,” Montealto said.

Ryan Benjamin Yu, general manager of Cebu Integrated Transport Multi-Purpose Cooperative (CITRASCO MPC), said fuel prices remain high relative to the prices when fare increase was implemented in October 2022. 

“Mas taas man ang increase versus sa decrease sa lana. Also, wala pa certainty na stable na ang prices sa fuel,” Yu said.

According to Yu, the price of diesel was at P46 per liter when fare increase was granted on October 22, 2022. At present, the price of diesel is at P60 per liter.

“Atong makita nga bisan niubos na ang presyo sa diesel, mas mahal ra gihapon ikumpapar sa presyo pag-implement sa fare increase,” Yu said.

Greg Perez, president of Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide (PISTON)-Cebu, said the government should strike a balance between the riding public and the drivers and operators.

While the proposed reduction of minimum fare is advantageous to the commuters, it is also disadvantageous to the drivers and operators.

“Kanang proposal sa DOTr makaayo na sa mga sumasakay pero angay balansehon sa gobyerno ang kahimtang pud sa mga driver ug operator,” said Perez.

Perez called on the government to provide fuel subsidy to be given directly to the drivers.

DOTr undersecretary Mark Steven Pastor told The Freeman that they have already asked the LTFRB to implement a rollback on the minimum fare for traditional and modern public utility vehicles as well as on public buses and UV express.

The directive was in line with the government’s service contracting program.

“Under service contracting po ito, government will subsidize the operational expenses of the operator,” Pastor said.

Under the service contracting program, operators and drivers are allowed to make a profit based on their number of trips each week regardless of whether they have passengers or not.

This program is a performance-based incentive given to operators and drivers involved in the program based on the number of trips their vehicles operate each week.

Under the latest proposal, DOTr wants minimum fare for PUVs to be slashed by P3. The proposal, however, is still subject to review by LTFRB. — FPL (FREEMAN)