Fare hike deferred; P2 fuel aid OK

MANILA, Philippines – A provisional fare increase for public utility jeepneys and buses was deferred by the Land Transportation Franchising and Regulatory Board (LTFRB) yesterday so it could be reviewed by the National Economic and Development Authority (NEDA).

At Malacañang, President Arroyo has approved the granting of a P2 fuel subsidy to public transport groups while the Cabinet studies other proposals to help the sector cope with rising costs of basic commodities.

Deputy presidential spokeswoman Lorelei Fajardo said the move was meant to temper demands for a higher fare hike that would hurt the commuting public.

“The President approved the P2 additional increase in (fuel) subsidy and we are also looking at the possibility of giving access cards so that they (transport groups) can avail of rice from the NFA,” she said.

Fajardo said Mrs. Arroyo will preside over a Cabinet meeting today in Panglao, Bohol to discuss the proper implementation of fare hikes.

“But we are trying to strike a balance (in granting subsidies) so that drivers would not be hurt much (by rising prices of basic commodities) and fares would not increase so much that it burden commuters,” she said.

The total fuel subsidy would now be P3 following the P1 granted earlier, Fajardo said.

Thompson Lantion, LTFRB chairman, said Transportation Secretary Leandro Mendoza has ordered a further study on the implications of the fare hike.

“This is only temporary, the cost of oil is rising so it’s one of our priorities,” he said.

Lantion said among the incentives for transport operators and drivers being ironed out are the P2 fuel subsidy and the tax exemption for imported spare parts, as well other benefits to cushion the impact of the rising price of oil.

However, public transport groups raised a howl of indignation over the deferment.

Efren de Luna, Alliance of Concerned Transport Operators (ACTO) president, said that the frustrating turn of events highlighted the ineptitude of the LTFRB and Lantion.

“It shows that Lantion is not up to his task as chairman of the LTFRB,” he said.

“Why announce something and then take it back the next day? Why make the announcement in the first place if it’s not yet a certainty?”

De Luna said Lantion’s eagerness to gain media mileage has put him in trouble.

“He shouldn’t have made that announcement. It seems to show that he makes decisions rashly and without consultations with the LTFRB board members,” he said.

Last Sunday, Lantion announced that jeepney and bus groups can start collecting the provisional fare hike tomorrow.

A provisional hike of 50 centavos was granted jeepney drivers, increasing the basic fare from P7.50 to P8; P1 for Metro Manila ordinary buses, hiking the basic fare from P8 to P9; and P1.50 for Metro Manila air-conditioned buses, increasing the basic fare from P10 to P11.50.

For provincial buses, ordinary buses were given a provisional hike of 10 centavos per kilometer while air-conditioned buses were granted 25 centavos per kilometer.

Public transport groups have demanded a P2 increase in the basic fare with an accompanying increase after the first 300 or 500 kilometers.

Meanwhile, Citizens Battle Against Corruption Rep. Joel Villanueva couldn’t understand why the government had to announce the fare hike, only to take it back.

“Was it taken back because commuters complained?” he said, noting this only added to the confusion of the public. — With Perseus Echeminada, Paolo Romero, Delon Porcalla