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Wednesday, May 11, 2005
Jeep fare up by P1.70; it’s not P1
Jeepney fares in Cebu and the rest of Central Visayas were raised by P1, but Land Trans-portation Franchising and Regulatory Board (LTFRB) 7 Director Rogelio “Jingjing” Osmeña said there was an error in the order from their central office.
This offers no consolation to consumers, though, who have to deal with higher fares and impending increases in the prices of oil, tuition, goods and services.
Congress yesterday raised the corporate income tax to 35 percent and gave President Arroyo the power to raise value-added tax to 12 percent by next year.
To give commuters a break, Osmeña promised to seek a correction with the central office in Manila. He also pointed out the new jeepney fare may not be applied in Cebu, like bus operators who are collecting fares below the authorized rates to stay competitive.
The LTFRB decision raised the minimum fare in the Visayas and Mindanao by P1 for the first four kilometers, instead of five kilometers. In Metro Manila and other areas in Luzon, the increase is P2.
Alternative
Using the “first four kilometers” formula will mean the increase is actually P1.70, he said.
“The minimum fare in Cebu is P5 for the first five kilometers. If there is a P1 increase, it should be P6 for the first five kilometers, not four, otherwise the fare for the first five kilometers is P6.70,” Osmeña said.
Although three transport groups are divided on whether they favor the P1 increase in fare, they all agreed on which roads in Cebu City private vehicles should be prohibited to enter during rush hours.
The City Traffic Operations Management (Citom) and the Cebu City Police Traffic Division met with transport leaders Jaime Moncada of Alyansa sa Nagkahiusang Driver-Operator Alang sa Reporma (Andar), Steve Cañas of Vudtrasco and Benjie Yu of Citrasco yesterday afternoon.
If Mayor Tomas Osmeña approves, private vehicles will be barred from entering Osmeña Blvd., Gen. Maxilom Ave. and Colon St. from 6 a.m. to 7:30 a.m. and from 5 p.m. to 6:30 p.m.
Cañas said that before anything is finalized, Citom will have an experimental period to see how well the plan works.
More money
Aside from easing the flow of vehicles at these times, operators and drivers of public utility vehicles hope that the closure of these roads to private vehicles will allow them more time on the road, thus getting more passengers and earning more.
While Cañas is against implementing a fare increase, Yu and Moncada favor it.
Moncada admitted that his group did not initiate the filing of a petition for increase.
However, he said that since the LTFRB in Manila included Cebu in the increase, drivers also admit they need the extra P1 to get by.
For his part, Cañas said he is against the increase and instead wants the Oil Deregulation Law scrapped.
“Even if I am in the transport sector, I pity the students and the daily wage earners. It is an additional burden to them,” Cañas told Sun.Star Cebu last night.
He pointed out that with the change in the routes of Mandaue City jeepneys, some students and daily wage earners have to spend more to take two or three rides to their destinations.
Oil companies
Yu, though, insists on the increase, saying the drivers need the money.
While Citrasco did not file for a petition for increase in Cebu, Yu said the head of the national organization included Visayas and Mindanao in filing their petition.
Last June 12, LTFRB set the minimum fare in Cebu at P5.50 for the first four kilometers (kms) and P1 per succeeding km.
But this was reduced to P5 for the first five kms and P0.70 per succeeding km after a meeting with drivers, operators and the riding public last June 29.
Aside from seeking a fare increase, transport groups in previous strikes have called for the scrapping of the Oil Deregulation Law.
During its session last Monday, the Cebu Provincial Board passed a resolution supporting the move of President Arroyo to ask big oil companies to open their books to public scrutiny.
This is supposed to erase doubts they are running a cartel or colluding with each other to manipulate prices.
Limited ban
“Oil companies have to open their books to the public to avoid being accused of operating as a cartel and to have transparency as well,” PB Member Victor Maambong said in his resolution.
He added that the continued increase in oil prices between 50 centavos and 75 centavos per liter every week, even though oil prices in the world market have stabilized, has alarmed the public.
The Oil Deregulation Law of 1998 liberalized the industry and allowed companies to set their prices without government intervention.
In an effort to save the public from the burden of higher fares, Mayor Osmeña proposed to ban private vehicles from certain routes during peak hours so jeepney drivers won’t ask for a fare increase.
But like Cañas, Anthony Pogado of the Nagkahi-usang Drayber sa Sugbo said any fare increase is not the solution to their problem because oil prices are steadily increasing.
“The ultimate solution is the abolition of the Oil Deregulation Law,” Pogado said. (EOB/MEA/MBG)
(May 11, 2005 issue)
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