Provincial police director Reynaldo Rafal said the four handgun-wielding rebels were among the 24 passengers of the Philtranco bus, with license plate EVJ 995. They took over the bus 30 minutes after it had left this city.
The rebels ordered driver Jose Realubit, 43, to proceed to Barangay Libod, some 600 meters from the town proper of Camalig, where it poured gasoline on the bus and torched it.
The rebels took the cell phones of some passengers to prevent them from reporting the incident to authorities, reports said.
Rafal has deployed two teams from the 501st and 502nd Provincial Police Mobile Groups to go after the rebels.
Firefighters from Camalig and Guinobatan towns put out the blaze. The passengers were unharmed.
Meanwhile, Catanduanes Gov. Leandro Verceles Jr. said he would ask President Arroyo to prevent the deactivation of the Southern Luzon Command (Solcom) which is in-charge of counter-insurgency operations in the Bicol region.
Verceles said the planned merger of Solcom and the Northern Luzon Command would prompt the NPA to launch more offensives against government forces.
He said the NPA continues to build its mass base in Catanduanes and Masbate because there are no Army units operating in the two provinces.
"How much more with the deactivation of the Solcom?" he asked.
Elsewhere, at least three persons were killed and nine others were wounded in renewed skirmishes between government troops and communist rebels in Esperanza, Agusan del Sur and Hinatuan, Surigao del Sur.
One of those killed was rebel Rey Chavez Granada alias Ka Danny, a murder accused who escaped from the Agusan del Sur jail. Among the wounded was S/Sgt. Gerry Deocares of the 36th Infantry Battalion. With Ben Serrano