LTFRB: Current jeepney fare to remain despite PUV modernization

LTFRB: Current jeepney fare to remain despite PUV modernization
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LAND Transportation Franchising and Regulatory Board Chairperson Teofilo Guadiz III has dispelled claims that the public utility vehicle (PUV) modernization program will immediately trigger a fare hike.

In a statement on Friday, May 4, 2024, Guadiz maintained that the current fare for PUVs will remain.

"There is no basis to implement fare hikes for public utility vehicles (PUVs)... Several factors, such as inflation and cost of fuel, must be considered before the agency approves a new fare increase,” he said.

Currently, the minimum fare for traditional jeepneys is P13 while P15 for modern jeepneys.

Guadiz made the assurance following the claim of Gregory Perez, head of Pinagkaisang Samahan ng mga Tsuper at Opereytor Nationwide Cebu, that once the PUV modernization program is fully implemented, jeepney fares will skyrocket to P40, considering the cost of modern jeepneys, which range from around P1.5 to P2.7 million.

In light of the deadline of the consolidation policy under the PUV modernization program, hundreds of jeepneys will no longer be allowed to operate after “a week or two” as they are already considered colorum after they failed to comply.

The PUV modernization program was launched by the former administration, which aims to replace traditional jeepneys with modern units that have at least a Euro 4-compliant engine or an electric engine to lessen pollution.  

The program requires the consolidation of PUV franchises, meaning that jeepney drivers and operators must operate under a cooperative to obtain approval for their provisional authority (PA) for franchise.

Jeepney units of operators and drivers who fail to comply with the mandatory consolidation policy by the extended deadline of April 30, 2024, will be considered colorum.

Under the program, drivers/operators will receive a government subsidy for the acquisition of PUVs, which is between P200,000 and P300,000 per vehicle, to help them cope financially.

They will also be assisted in bank financing transactions.

Two petitions seeking to call off the implementation of the PUV modernization program are still pending before the Supreme Court, both of which were filed by Piston and other members of transport groups. (TPM/SunStar Philippines)

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