COMMUTERS will face higher transportation costs starting Thursday after the Land Transportation Franchising and Regulatory Board (LTFRB) approved fare increases for public utility vehicles (PUVs) amid soaring pump prices, a move that would add to inflationary pressures.
“It’s the sense that each week, we see substantial, not only minimal changes (in oil prices). With the board’s permission, and the facts we’ve considered, there will likely be changes in transport fares. This (fare adjustment) will likely be everlasting,” LTFRB Chairman Vigor D. Mendoza II said in a media briefing on Tuesday.
PUV operators can implement the adjusted fares on March 19, or as soon as they secure the brand new fare matrices and post them of their units, Mr. Mendoza said, adding that the fare hike will likely be everlasting by June.
Michael L. Ricafort, chief economist at Rizal Business Banking Corp., in a Viber message, said higher transport costs may lead to faster inflation.
“Higher transport fares result in risks of petitions for higher wages that might also result in higher prices of products and services. The effect may lead to higher inflation expectations,” Mr. Ricafort said in a Viber message.
The LTFRB approved a P1 increase in the bottom fare for traditional public utility jeepneys (PUJs) to P14, and a 20 centavo-hike for each succeeding kilometer to P2.
For contemporary PUJs, the LTFRB greenlit a P2 increase in the bottom fare to P17, and 20-centavo increase for each succeeding kilometer to P2.40.
For strange city buses, the bottom fare will increase to P15 from the present P13, while succeeding fare per kilometer will increase by 24 centavos to P2.49 from P2.25.
The bottom fare for air-conditioned city buses will rise to P18 from P15, while the succeeding fare per kilometer will jump to P2.98 from P2.65.
The LTFRB said the approval of the brand new fare matrix comes after the rising fuel costs triggered by the continuing US-Israel war on Iran, even though it approved the petition that was filed in 2023.
“This decision that covers all modes of land public transportation is proof of the National Government’s real concern on the welfare of those within the transport sector too while protecting the interest of the final commuting public,” Mr. Mendoza said.
The LTFRB also approved a P40 increase within the flag-down rate for airport taxis to P115 for the primary 500 meters, from P75, but there was no increase within the P4 fare per 300 meters or per two minutes.
Transportation network vehicle services were also allowed to boost their base fare by P20 to P65 for sedans; P75 for AUV and SUV units; P55 for hatchback units; and P165 for premium units.
Over the weekend, the LTFRB approved a rise of as much as P1 for provincial public utility buses effective March 14.
Under the approved fare adjustments, the provisional increase for provincial air-conditioned, deluxe, and super deluxe buses is ready at 35 centavos per kilometer.
For provincial luxury buses, the approved provisional increase is ready at 45 centavos per kilometer, while strange provincial buses will see a P1 increase on the bottom fare and 30 centavos per succeeding kilometer.
The LTFRB also greenlit a 15% increase of the prevailing fares for point-to-point bus services. The LTFRB said it calculated the fare adjustment based on the fuel prices in 2022 until 2025 which were on the P80-per-liter range.
The associated fee of fuel is the regulator’s biggest consideration in approving the fare hike petition, Mr. Mendoza said, adding that the agency has also factored in the costs of spare parts and maintenance of vehicles which climbed by 14%.
Mar S. Valbuena, chairman of transport group Manibela, said the P1 fare increase for PUJs isn’t enough given the surge in oil prices.
“They claimed they’ve fastidiously studied it, however the P1 fare increase for traditional jeepneys is an insult due to current diesel prices,” Mr. Valbuena said in a Viber message.
On Tuesday, gasoline prices increased between P12.90 to P16.60 per liter, while diesel jumped by P20.40 to P23.90 per liter. Based on the monitoring of the Energy department, gasoline prices may go as high as P91.60 per liter while diesel may surge to P114.90 per liter.
Bus operators’ group Mega Manila Consortium Corp. Spokesperson Juliet de Jesus told reporters that they’re studying to file one other fare increase petition if fuel prices reach greater than P100 per liter.
Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide said the group will still be searching for a P5 fare increase.
Meanwhile, Mr. Mendoza said that taxis and motorcycle taxis have also sought fare hikes, although he declined to provide details on the petition because the regulator remains to be studying the petition. — Ashley Erika O. Jose