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Fare hike aborted

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Tuesday, May 20, 2008
Fare hike aborted

MANILA -- The May 21 implementation of the P0.50 provisional fare increase for passenger jeepneys and buses nationwide was postponed after the Department of Transportation and Communications (DOTC) sought to conduct further study on its implication.

The study will also include the impact of several "government support mechanisms" on drivers and operators who are clamoring for the fare increase.

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Transportation and Communications Secretary Leandro Mendoza said Monday the order was already relayed to Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Thompson Lantion.

The LTFRB is an agency attached to DOTC along with Land Transportation Office (LTO), Cebu Port Authority, Philippine Ports Authority, Mactan Cebu International Airport Authority, among others.

Subsidy

The support mechanisms announced by the government earlier include the additional P2 per liter subsidy on fuel for public transport, access to government-subsidized rice, and tax exemption on spare parts.

Mendoza expects that the distribution of low-priced rice to bus and jeepney drivers would help them cope with the rising prices of oil.

The support mechanisms, however, will still be presented to the National Economic and Development Authority, which will decide if these are feasible.

The LTFRB announced the provisional fare increase on Sunday and had set its implementation on Wednesday.

Protest

Efren de Luna, head of the Philippine Confederation of Drivers and Operators-Alliance of Concerned Transport Organization (PCDO-Acto), said they are surprised by the order to defer the fare hike.

He said they have initially scheduled next month a transport strike that would be "nationwide" in scope and whose length 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)

For more Philippine news, visit Sun.Star Baguio.

(May 20, 2008 issue)
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Click to read previous articleRetired cop nabbed for 'Laguna' massacre

Suspect in ’99 blast shot in the head


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