MANILA The Land Transportation Franchising and Regulatory Board (LTFRB) issued on Monday its resolution ordering a provisional rollback on minimum jeepney fares to PHP9 in the National Capital Region, Central Luzon and Southern Luzon regions.
The LTFRB's decision was in compliance with the directive of Department of Transportation (DOTr) Secretary Arthur Tugade to implement fare reductions amid the declining petroleum prices.
Because of the continuous rollbacks in the price of fuel, Secretary Tugade directed us to implement a motu proprio fare decrease. We will implement that, and no fee shall be charged for a new fare matrix, LTFRB Chairman Martin Delgra III said in a statement.
The PHP9 jeepney fare shall be effective immediately upon publication in a newspaper of general and/or local circulation.
In its resolution, the LTFRB cited the recent reductions in petroleum prices in the world market as justification for the fare rollback.
The world price of diesel has started to go down resulting to a decrease in the price per liter of the pump price of diesel in the country reaching as low as a common price of PHP43.75 per liter in Metro Manila and a common price of PHP45.57 per liter in Southern Luzon as of November 15, 2018 although still much higher by 40.16 percent compared to the diesel pump price per liter of September 2017, according to the Board.
The Board is also set to convene a technical working group to deliberate on the proposed formula that will predetermine fuel adjustments based on various factors such as world market prices of crude oil, foreign currency exchange rate, consumer price index, inflation rate, and the financial viability of the public transport system, among others.
Tugade earlier directed the LTFRB to come up with a parametric formula so that fare adjustments would become automatic rather than rely on petitions.
Fares must be based on a predetermined matrix that will set clear guidelines when these should be increased or lowered, Tugade said.
The LTFRB approved last Oct. 18 a PHP2 increase in the minimum jeepney fare from PHP8 to PHP10 in Metro Manila, Central Luzon and Southern Luzon. The petition for the jeepney fare hike was filed in September last year, citing higher fuel prices. (PNA)
Source: Philippine News Agency i