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Sunday, November 06, 2005
Transport bureau shelves fare increases
CEBU CITY -- Jeepney and taxi fares will stay unchanged, at least until the end of December.
The Land Transportation Franchising and Regulatory Board (LTFRB) will not entertain any petition to raise fares within this year, said LTFRB 7 Legal Officer Jose Douglas Sanson.
Anthony Pogado, head of the Nagkahiusang Drayber sa Sugbo, has said they will seek a minimum fare rate of P7.50, instead of P6, because fuel prices went up again after the implementation of the 10 percent reformed value-added tax (RVAT) on petroleum products last Nov. 1.
Richard Cabucos, chairman of the Metro Cebu Taxi Operators Association (MCTOA), also announced that his group might also seek a P45 flagdown rate, from the present P30.
However, Sanson said that when the LTFRB en banc adjusted the jeepney fare rates by P1 in Central Visayas last May 26, the decision stated that "no other petition for fare rate increase shall be entertained within this year."
In that order, the minimum fare was raised from P5 to P6 for the first five kilometers.
The taxi fare was adjusted last January, from the flagdown rate of P20 for the first 500 meters and P1 for every 200 meters after that, to P30 minimum and P2.50 per succeeding kilometer.
Misleading
Soon after the RVAT took effect last Nov. 1, the transport sector raised the need to adjust fares because oil companies increased their fuel costs.
Before, petroleum products were among those exempted from the valued-added tax.
Meanwhile, opposition Ilocos Norte Representative Ma. Imelda "Imee" Marcos criticized the government's alleged "misleading information" that the RVAT would have no effect on the cost of basic commodities.
In the weekly "Kapihan sa Sulo" forum in Manila yesterday, Marcos said the prices of basic goods have gone up since the RVAT took effect.
Marcos also said the "Tindahan ni Gloria" rolling stores are nowhere to be found.
The rolling stores program has become "an impotent public service project" because it failed to provide cheaper products to the people, she said.
Close them
Marcos asked the government to close the mobile stores, saying millions of pesos in public funds are just wasted on them.
"It failed to offer consumers, especially those in depressed areas, cheap and lower priced basic foodstuff like rice, coffee, milk, sugar, sardines and noodles," she said in the same forum.
Employees who are starting to feel the weight of higher prices are also considering asking for a pay raise.
President Arroyo has backed a legislated wage, acknowledging the pressure of the RVAT on consumers.
However, Cebu Archbishop Ricardo Cardinal Vidal is against Arroyo's proposal because this will force businesses, especially small enterprises, to close or lay off workers.
Cebu's business leaders also rejected a legislated wage increase, after the daily pay was raised to P223 last June, from P208.
Hurting
Some jeepney drivers are getting restive, though.
Pogado told Sun.Star Cebu that while the latest LTFRB decision prohibits another fare increase petition within this year, the government must understand the plight of the drivers.
He said the LTFRB must also consider the fact that when the decision was made, the price per liter of gasoline was P24. At present, the price of gasoline is projected to hit P40 per liter, with the RVAT.
Cabucos, on the other hand, said that taxi operators are considering converting all their units to run on liquefied petroleum gas (LPG) to reduce the operational cost.
However, Cabucos said the conversion fee is P28,000 and, worse, LPG prices are also steadily rising.
In June 2004, Cabucos said MCTOA will not file a petition for a fare increase if LTFRB and the Land Transportation Office will get rid of illegal taxis.
The group, though, was forced to backtrack on its word because of higher fuel costs. (EOB/Sunnex)
(November 6, 2005 issue)
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