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P0.50 fare hike 'not enough'

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Wednesday, May 21, 2008
P0.50 fare hike 'not enough'
By Jay Dooma Balnig

ILOILO CITY -- Local public utility jeepney (PUJ) drivers in Iloilo City are not satisfied with the proposed P0.50 fare increase approved by the Land Transportation Franchising and Regulatory Board (LTFRB).

The regular fare set in Iloilo City is P7 for the first 4 kilometers.

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Gaspar Grejarte, president of the Iloilo City Alliance of Jeepney Owners and Drivers Association (Icajoda), said the fare hike, which was approved by the Cabinet on Tuesday, is not enough to lessen their burden.

He said that considering the present high price of oil and spare parts for vehicles, the ideal and acceptable fare hike would be from P1 to P1.50 for PUJs.

The local transport groups in this city prefer the lifting of the 12 percent e-VAT on oil products than to have a fare hike imposed.

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LTFRB 7 official asks commuters to prepare exact amount as fare rate is hiked

However, Transportation Secretary Leandro Mendoza, in an interview in Panglao, Bohol, said the government subsidies sought by the jeepney and bus drivers and operators like the additional P1 fuel subsidy and access to National Food Authority (NFA)-subsidized rice is still being studied by the economic team particularly its impact on all concerned.

The transportation chief said among the subsidies that the government is studying is the increasing of fuel subsidy from P1 to P2, giving access to the PUV drivers to the NFA rice, a tax exemption on spare parts, and the construction of at least four compressed natural gas stations in Metro Manila and an assistance in convert the diesel-engine PUVs to liquid petroleum gas enable engines.

He added that P4.3 billion is being allocated for these subsidies where P1 billion would go to the implementation of the Clean Air Act and the P3.3 billion would cover the additional fuel subsidies the conversion kits and packages, and the construction of the CNG stations, among others.

Mendoza also disclosed that they expect to come up with a decision on the proposed subsidies and assistance within the month, adding that its implementation may even coincide with the decision of the government on the petition of the jeepney and bus drivers and operators for a P1.50 and P4 fare increases, respectively.

He said aside from explaining the delay in the approval and implementation of the government assistance, he would inform transport groups of the agreement to go ahead with the provisional increase which they first announced Sunday to eventually withdraw it Monday.

The government is expecting a possible transport rally or holiday to coincide with the school opening next month. This, according to Mendoza, is the reason that they are hastening the study and implementing details of the different mechanisms and assistance that the government would extend to uplift the plight of the public utility drivers and operators.

LTFRB Chairman Thompson Lantion in an interview Tuesday said the provisional fare increase would be a 50 centavo in the minimum fare or for the first four kilometers for jeepney; P1 for regular buses; and P1.50 for air-conditioned buses.

Mendoza and Lantion asked the transport sector to be more patient and understanding as they fully understand plight, but the government must also consider the effect of such fare increase on commuters.

LTFRB Western Visayas meantime is still validating the petition of the Association of Taxi Operators in Panay (Ato) to increase taxi fare, especially the flog-down rate.

According to information, if ever the new fare hike would be imposed, PUJs must have an original copy of a fare matrix certified by the local transportation office. Any PUJs that don't have a fare matrix are prohibited to impose the P0.50 fare increase.

The LTFRB makes it clear that the said fare hike is not yet imposed in Iloilo. Drivers who would ask for a P7.50 fare from a passenger could be reported to transportation authorities. (With JMR/Sun.Star Iloilo/Sunnex)

For more Philippine news, visit Sun.Star Pangasinan.

(May 21, 2008 issue)
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