The Land Transportation Franchising and Regulatory Board (LTFRB) on Wednesday said it will ask the National Economic and Development Authority (NEDA) to study the effect of granting a P1 provisional fare hike for public vehicles before the year ends.
At a news conference, LTFRB chairperson Teofilo Guadiz III said the agency is set to hear two petitions filed by various transport groups seeking a fare increase in the flag-down rate and another petition for a P1 peso provisional fare increase on Sept. 26.
“We have yet to consult with the NEDA whether to grant a P1 provisional fare increase or not, and when is the appropriate time (to grant),” Guadiz said.
He has asked the groups to consolidate their request and present just reasons for a fare hike.
Amid the continued spike in petroleum prices, the groups Pasang Masda, Alliance of Concerned Transport Organization, and Alliance of Transport Operators and Drivers Association of the Philippines filed a petition to raise traditional jeepney fares by up to P5.
They also asked the LTFRB to issue an order granting a provisional increase of P1 to the current minimum fare, ahead of the hearing on their petition.
The Liga ng Transportasyon at Operators sa Pilipinas, PISTON, Stop and Go Transport Coalition, and Federation of Jeepney Drivers Association of the Philippines also asked the LTFRB for a P2 increase in minimum fare.
“The fare increase is triggered by the increases in petroleum products,” Guadiz said. “But automatically, a fare increase is a cause of inflation.”
He assured the public utility vehicle (PUV) drivers and operators that the LTFRB understands their state.
“My brothers in the (transport) industry, we understand your predicament. We feel what you feel but we cannot just come up with a decision that fast. We have to make a study. We know the necessity of a fare increase,” the LTFRB chief said.
“We must balance the needs of the entire economy. All prices would also go up, too (with a fare hike). We recognize the necessity of the fare hike, but we also want to save the economy from inflation,” he added.
Once the prices of all basic commodities would go up, those in the transport sector would also be hit badly, Guadiz said.