THE Department of Transportation (DoTr) will ask the Land Transportation Franchising and Regulatory Board (LTFRB) to review the jeepney fare hike approved two weeks ago in the face of receding world crude oil prices.
“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,” DoTr officer-in-charge Undersecretary for Road Transport Mark Richmund M. de Leon said in a statement on Wednesday.
The LTFRB on Oct. 18 approved a P10 minimum fare for public utility jeepneys in the National Capital Region as well as Regions 3 and 4 in response to a petition from transport groups affected by rising oil prices earlier this year and the weakening of the Philippine peso. The P2 hike — which incorporates a provisional P1 increase implemented in July — will be implemented starting Nov. 2.
The DoTr noted the price of fuel has been going down three weeks in a row.
“Nung diniscuss ‘yung price increase sa LTFRB, ang presyo ng gasolina per barrel, $82. Ngayong ina-award… ‘yung presyo per barrel, $76 (When the petition for price increase was being discussed in the LTFRB, the price of gasoline per barrel was $82. Now that it has been granted, the price per barrel is $76],” Transportation Secretary Arthur P. Tugade said in a press briefing on Wednesday.
He noted that, under the current system, having to hold consultations every time there is a fare hike petition can result in a situation wherein decisions are made when conditions that warranted the fare increase in the first place have lapsed.
The transportation chief noted the case for the aviation sector, wherein airlines are allowed to adjust air fares based on a regulator-approved matrix that sets the limit for fare increases vis-a-vis movements of global jet fuel price.
“I want rate increases to be predicated on a predetermined matrix,” Mr. Tugade said.
Sought for comment, LTFRB Chairman Martin B. Delgra III said in a mobile phone message that the board will consider the DoTr’s suggestion, and that the proposal for a matrix for fare increases “would be favorably considered.”
“Review of current policy and processes, consultation with stakeholders and concerned government agencies and protocol on frequency of fare adjustments may be some factors to be considered,” Mr. Delgra said. — Denise A. Valdez

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