Gov’t sets revisions in fare matrix computation

MANILA, Philippines - The government will revise the matrix of factors that guide authorities in setting the minimum fare for commuters around the country.

Transportation Secretary Joseph Emilio Abaya told reporters after the oath-taking of newly-appointed Land Transportation and Franchising Regulatory Board (LTFRB) chairman Winston Gines that the review was sparked by a proposal from another Cabinet secretary.

Abaya explained that the idea linking the minimum fare to the price of oil came from Energy Secretary Carlos Jericho Petilla.

He added that the review was triggered by an informal discussion on whether or not the minimum fare for commuters across the Philippines should be linked directly to the price of imported oil.

“We still have to study this. It (fare adjustment) should be formula-based to eliminate discretion,” the Department of Transportation and Communications (DOTC) chief stressed.

Abaya explained that a mathematical model linking the price of imported oil to the minimum fare could be constructed not just for Metro Manila but for the entire archipelago as well.

For his part, LTFRB board member Ronaldo Corpus said the fare matrix is a complex task requiring an overhaul of the factors that help determine its rate which is expected to be completed within three months.

Corpus pointed out that the inflation factor is separate from such other equally important determinants as the transport operators’ operating and maintenance costs that are all key ingredients to the setting of the minimum fare for commuters.

The operating cost of a typical transport operator, according to him, accounts for as high as 50 percent of total costs, while maintenance costs account for the other half.

The review of the fare matrix also involves the National Economic and Development Authority (NEDA) to help account for inflation.

The LTFRB last approved a P0.50 fare rollback to P8 from P8.50 in Metro Manila and to P7.50 from P8 in Visayas and Mindanao in May last year due to low oil prices in the world market that prompted oil companies to cut pump prices of petroleum products.

Meanwhile, the new LTFRB chief vowed to study the process and speed up price adjustment petitions as well as intensify the government’s campaign against colorum public utility vehicles, among others.

“We would look into the prevention of colorum operation from happening. We have started inspection of franchises, on buses and terminals to make them compliant to terms and conditions of their franchise,” Gines said.

If he had his way, Abaya earlier said he would slap a a deterrent fine of P1 million on violators to boost the government’s anti-colorum campaign.

Abaya pointed out that the P10,000 fine currently imposed on violators is not enough to discourage the operators of colorum public utility vehicles particularly buses and jeepneys.

The Metro Manila Development Authority (MMDA) earlier said almost half or 46 percent of the 10,000 buses that traverse EDSA everyday are colorum while the Philippine Global Road Safety Partnership believes that there are about one million colorum vehicles nationwide.