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Wednesday, September 10, 2003
Test deregulation of fare rates in Cebu: ADB
By ELIAS O. BAQUERO
Sun.Star Staff Reporter
THE Asian Development Bank (ADB) has recommended to the Land Transportation Franchising and Regulatory Board (LTFRB) to make Cebu a pilot area for deregulation of fare rates.
Once deregulated, bus operators will have discretion to increase or decrease fare rates any day of the week, depending on the situation.
But LTFRB Chairman Dante Lantin observed that because of stiff competition, bus operators are already charging rates lower than the LTFRB-approved rates to lure passengers.
That, Lantin said, is already a form of “deregulation.”
And unless bus operators settle their fare rate disputes, his office would still study the ADB’s recommendation.
Lantin, however, said that bus operators violated the law by collecting only P0.55 per kilometer despite the legal rate of P0.90 per kilometer as approved by LTFRB.
Wennie Enjambre, secretary of the Cebu Provincial Bus Operators’ Association (CPBOA), said some of them can’t improve their units because of the low fare rates.
Jun Jumao-as, CPBOA director and operator of Jojan Liner, said V-hire units have cornered a big percentage of the passenger volume, while minibuses are collecting very low fares.
For example, Jumao-as said, if the fare is placed at P50 for a certain route, some bus operators would collect only P30 to get the bulk of the passengers.
Lantin said that because Cebu bus operators are implementing very low fare rates than the rates approved by LTFRB, this already amounts to deregulation.
Results
“You can discuss your own law, and you impose your own tariffs while LTFRB is making Cebu a pilot area. But we must see to it that it will produce good results—both for the bus operators and the riding public,” Lantin told bus operators.
Lantin said that while the passengers are happy with the cutthroat competition because of very low fares, operators can no longer afford to maintain their units in good running condition, which places passengers at risk.
Jumao-as agreed. He said that instead of buying new tires, they can only afford to buy recapped tires, which are prone to explosion.
Lantin said Cebu bus operators are creating their own rules on fare rates.
“But let’s see if this is good or bad. If good, let’s institutionalize it. If bad, let’s stop it,” he added.
Lantin set a meeting with bus operators next week to finalize plans and programs that may lead to the deregulation of fare rates in Cebu. |
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