LTFRB directors want to be the ones to decide on fares

CEBU, Philippines - With the lifting of the oil price freeze today in Luzon, many transport groups have expressed concern on the possible shoot up on the prices of oil products that may also trigger fare rate increase in the near future.

Because of this, the proposal to let the regional offices of the Land Transportation Franchising and Regulatory Board to review and decide on fare rate applications was considered.

However, LTFRB-7 director Romulo Bernardes said that their national office is still to submit the proposal to the National Economic Development Authority.

Bernardes said that as of now, he has not received any communication from their head office as to when such proposal will be submitted to NEDA.

Under the present rule, regional directors are only required to gather all the fare hike petitions and conduct public hearings. The results of the public hearings will be forwarded to the LTFRB head office and the three board members of LTFRB shall be the ones to have the final decision on the matter.

But according to some transport leaders, this would take time for LTFRB to decide on their petition and yet the prices of fuel continue to increase.

During the LTFRB’s Regional Director’s Conference held last week, it was agreed by the members of the board that all fare hike petitions filed by the different transport groups nationwide will be consolidated.

Bernardes said that at present, more than five fare hike petitions were filed nationwide, and one of which is filed by the Cebu Integrated Transport Services Cooperative or Citrasco.

On August 18, 2009, Citrasco has filed an urgent motion asking LTFRB-7 to immediately rule on its petition for P1 fare adjustment atop the current minimum jeepney fare of P6.50 in the region.

Region VII has around 10,000 jeepney units majority of which are in Cebu.

Jeepney’s minimum fare in Central Visayas has reached P8 in July last year amidst the rising cost of fuel but it was reduced to P7.50 sometime in August of the same year when prices of fuel started to drop.

On December 15, 2008, LTRFB implemented a second round of provisional fare reduction of 50 centavos for jeepneys making it P7 from P7.50 and further reduced it by another 50 centavos sometime in March this year, making the current fare P6.50. — Mitchelle L. Palaubsanon/WAB  (THE FREEMAN)