Tuesday, May 20, 2008 Transport office defers fare hike
THE May 21 implementation of the P0.50 provisional fare increase was postponed after the Department of Transportation and Communications (DOTC) ordered the Land Transportation Franchising and Regulatory Board (LTFRB) to conduct further study on its implication.
DOTC Secretary Leandro Mendoza said he has ordered LTFRB chairman Thompson Lantion to defer the fare increase as the agency was conducting studies on several support mechanism for public transport drivers and operators who are clamoring for such an increase.
The "government support mechanisms" Mendoza referred to are the additional P2 per liter government subsidy on fuel for public transport, access to government-subsidized rice, and tax exemption on spare parts, among others.
Mendoza said he expects that the distribution of low-priced rice to bus and jeepney drivers would help them cope with the rising prices of oil.
The report said the proposed support mechanisms would also be presented to the National Economic and Development Authority (Neda), which will decide if these are feasible.
The LTFRB announced the provisional fare increase on Sunday and had set its implementation on Wednesday.
The provisional fare increase would entail P0.50 increase in minimum jeepney fares in Metro Manila and other regions effective at 12:01 Wednesday.
Lantion said with the increase, minimum fares in public utility jeepneys would be raised to P 8 from the present P7.50 for the first four kilometers while fares in ordinary buses will be adjusted to P9 from the present P8 for the first five kilometers.
Minimum fares in air-conditioned buses will likewise be increased to P11.50 from the present P10.
There will be no increase on the rates for every succeeding kilometer for both Metro Manila jeeps and buses, Lantion said in announcing the latest fare increase.
Provincial regular buses will increase their fare from P8.50 to P9 for the first five kilometers and P1.40 for every succeeding kilometer.
In a related development, various transport groups denounced the flip-flopping of the LTFRB on the fare increase and threatened to mount protests in Metro Manila and other parts of the country.
Philippine Confederation of Drivers and Operators-Alliance of Concerned Transport Organization (PCDO-Acto) head Efren de Luna said they are surprised over the DOTC's order to defer the fare increase, noting that they are initially scheduling the transport strike next month.
He said this will be "nationwide" in scope and that the length of the transport strike will depend on the situation and on what the transport groups will agree on.
"We are calling for a transport holiday next month," de Luna said.
Other transport groups said they were also saddened by the suspension of the fare increase implementation. (AH/Sunnex)
