LTFRB to void 'overcharging' provincial bus firms' franchise

MANILA, Philippines - Provincial bus firms that increased their fare rates are at risk of losing their franchise for “overcharging,” an official of the Land Transportation Franchising and Regulatory Board (LTFRB) said yesterday.

LTFRB board member Manuel Iway said the Provincial Bus Operators Association of the Philippines (PBOAP) insists on the fare hike, which he described as “illegal.”

The Department of Transportation and Communications Undersecretary Dante Velasco said what the PBOAP imposed yesterday was a return to fare rates set before they voluntarily rolled back fare rates when world crude oil prices plummeted.

Velasco said he has already ordered the LTFRB to meet with the PBOAP to “settle this problem.”

PBOAP president Alex Yague said they have the right to implement a May 17, 2008 ruling by the LTFRB, which states that the “rate for ordinary buses is P1.40 per kilometer,” while the rate of P9 for the first five kilometers will be retained.

He said they went back to the old fare rates due to the continual oil price hikes.

Iway, however, said the May 17, 2008 ruling was superceded by a Dec. 4, 2008 order that allowed provincial buses to charge P1.35 per kilometer, on top of the P8.50 charge for the first five kilometers.

Yague said the Dec. 4, 2008 ruling was in effect only until March 2009.

Iway said they are sending out investigators to gather information and will send show cause orders to bus firms.

“If they cannot justify their actions, we can either suspend or revoke their franchises,” he said.

Iway also urged those who will be spending the Holy Week in the provinces to report erring provincial buses that will take advantage of the season to overcharge.