Tuesday, July 22, 2008 Ceres won’t increase fare until group enforces MOA
THE Ceres Bus Company will not join the Cebu Provincial Bus Operators Association (CPBOA) in increasing the fare rates until all those who will initiate cut-throat competition will be punished.
Since last week, CPBOA has increased the fares from P6 to P8.50 in the minimum fare for the first five kilometers, and from P1 to P1.20 per succeeding kilometer.
In a radio dyLA interview, Clemente Villarin, Cebu-based operations manager of Ceres Bus Company, said that cannot see any serious commitment from CPBOA to penalize bus companies who initiate a cut-throat competition.
Ceres has 159 units running all over Cebu Province.
Villarin said that a few years ago, bus operators met with Gov. Gwendolyn Garcia at the Capitol where they signed a memorandum of agreement (MOA) that they will collect P1 per kilometer.
But, Villarin said, some bus companies did not honor the MOA and collected less than P1, thus creating a cut-throat competition.
He said the CPBOA just ignored the violations.
CPBOA president Nicolas Villahermosa told Sun.Star Cebu that the P8.50 they are collecting was based on the old official rate granted by the Land Transportation Franchising and Regulatory Board (LTFRB).
Villahermosa said that the present rates agreed are still lower than the new rates approved by LTFRB in the amount of P9 for the first five kilometers and P1.40 per succeeding kilometer.
At present, CPBOA is collecting P1.20 per succeeding kilometer which is lower by P0.20 compared to the new official rate.
Villarin said that in the old MOA, they were all signatories and the fine was set at P1,000 for the first offense and other penalties depending on the number of violations. But CPBOA failed to impose the penalties.
“If there is serious compliance with what was agreed, and strict penalty for those who will violate, then I think we will cooperate,” Villarin said.
Villarhermosa, for his part, said the problem started when Rough Riders, which used to confine its operation in northern Cebu, has invaded southern Cebu, especially in the Cebu-Dumanjug-Ginatilan route.
He said he called up Villarin and they agreed to meet with LTFRB 7 Director Romulo Bernardes today to discuss the issue.
Meanwhile, the Metro Cebu KMK Bus Liner, which operates aircon busess in the SM-Minglanilla-Naga route threatened to stop its operation if the P5 fare increase they’ve
demanded will not be granted by LTFRB.
KMK president Cecile Montero, in radio dyLA interview, said they will meet with LTFRB 7 officials to ask for an increase.
Montero said they increased the fares by P5 last Friday due to the continuous increases in the prices of fuel, but passengers refused to pay the increase because they lack the approval of LTFRB. (EOB)
