Tuesday, May 20, 2008 Editorials: Inevitability of a fare hike
THE Land Transportation Franchising and Regularity Board (LTFRB) obviously did not agonize much in imposing a 50-centavo increase in jeepney and bus fare.
Many people, including those much affected by the decision, have considered the increase as inevitable considering the continued rise in the prices of petroleum products.
Prices of gasoline, diesel and kerosene have gone up 11 times since January this year, or a total increase of P7 per liter for gasoline and P6.50 for diesel and kerosene.
Surely, people understand the situation the transport sector is in.
The public worry was that the increase would be too high to be reasonable—a concern that may have been partly appeased by the LTFRB decision to settle on 50 centavos.
Situation
The problem is that this is only provisional, meaning it can be withdrawn depending on the situation, as LTFRB Chairman Thompson Lantion explained.
Or it can be increased further, which is the other side of the “provisional” coin.
The “situation” Lantion was talking about is, of course, the world petroleum market where a big chunk of the woes we are currently experiencing is tied with.
And while militant drivers may have been correct in pinning the blame on the EVAT and the Oil Deregulation Law, the provisional increase is needed for the short term.
In the meantime, government, the transport sector and the public should continue tackling EVAT and the Oil Deregulation Law even after a fare hike has been approved.
It should not be an on-and-off affair, to be effective.
Wage hike
Anyway, government concern for the drivers and operators should conjure a parallel concern for commuters, many of whom are ordinary wage earners.
The effect of fare hikes should be blunted by the increase in wages.
Unfortunately, such is not often the case in the current scheme of things, with the Regional Tripartite Wages and
Productivity Board often granting crumbs for increases.
It would be interesting to find out if members of the wage board in the region will be as open to the inevitability of fare hikes as they are to the need for wage increases.
