Commuters will face higher travel costs starting Thursday after the Land Transportation Franchising and Regulatory Board (LTFRB) approved an increase in fares for public utility vehicles (PUVs) amid rising pump prices, a move that could add to inflationary pressures.
“It is the sense that every week, we see big changes, not just small changes (in oil prices). With the approval of the board, and the facts we have considered, there will be changes in the fares. This (fare adjustment) will be permanent,” said LTFRB Chairman Vigor D. Mendoza II in a press conference on Tuesday.
PUV workers can use the adjusted fares on March 19, or as soon as they get the new matrices and send them to their units, said Mr.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., in a Viber message, said high transportation costs could lead to rapid inflation.
“High transportation costs lead to the risk of higher wage demands which will also lead to higher prices of goods and services. The result may lead to higher inflation expectations,” said Mr. Ricafort in a Viber message.
The LTFRB approved a P1 increase in the base fare of traditional public utility jeepneys (PUJs) to P14, and a 20 per kilometer increase to P2.
In modern PUJs, the LTFRB increases the base fee by P2 to P17, and increases by 20-centavo for each subsequent kilometer to P2.40.
For regular city buses, the base fare will increase to P15 from the current P13, while the fare per kilometer will increase by 24 centavos to P2.49 from P2.25.
The base fare for air-conditioned city buses will increase to P18 from P15, while the next fare per kilometer will jump to P2.98 from P2.65.
The LTFRB said the approval of the new fare matrix comes after the increase in fuel costs caused by the ongoing US-Israel war against Iran, although it approved the request filed in 2023.
“This decision affecting all modes of public transportation is proof that the National Government really cares about the welfare of those in the transportation industry while protecting the interests of the general public,” said Mr. Mendoza.
The LTFRB also approved a P40 increase in the flagging rate of airport taxis to P115 for the first 500 meters, from P75, but did not increase the fare to P4 for 300 meters or every two minutes.
Transportation network car services were also allowed to increase their base fare by P20 to P65 for sedans; P75 for AUV and SUV units; P55 hatchback units; and P165 for premium units.
Over the weekend, the LTFRB approved an increase of up to P1 for provincial buses effective March 14.
Under the approved fare adjustment, the temporary increase for air-conditioned, deluxe, and super deluxe provincial buses is set at 35 centavos per kilometer.
For the province’s flagship buses, the approved temporary increase is set at 45 centavos per kilometer, while the province’s regular buses will see an increase of P1 in fares and 30 cents per kilometer.
The LTFRB also greenlighted a 15% increase in the existing fares for point-to-point bus services. The LTFRB said it is calculating the fare change based on fuel prices from 2022 to 2025 at P80-per-liter.
The cost of fuel is the main consideration for the regulator in approving the request for a fare increase, said Mr. Mendoza, added that the agency has also included prices of parts and maintenance of cars in satisfactory condition which increased by 14%.
Mar S. Valbuena, chairman of the Manibela transportation association, said the P1 fare increase for PUJs is not enough considering the increase in oil prices.
“They say they studied it well, but the P1 fare increase for traditional jeepneys is an insult because of the high prices of diesel,” said Mr. Valbuena in Viber message.
On Tuesday, the price of gasoline increased from P12.90 to P16.60 per liter, while diesel increased by P20.40 to P23.90 per liter. Based on the energy department’s monitoring, gasoline prices may increase to P91.60 per liter while diesel prices may increase to P114.90 per liter.
Bus operator group Mega Manila Consortium Corp. Spokesperson Juliet de Jesus told reporters that they are studying fianother request to increase the fare if the price of gasoline reaches more than P100 per liter.
Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide said the group will still want to increase the fare by P5.
Meanwhile, Mr. Mendoza said that taxis and motorcycle taxis also demanded an increase in fares, although he declined to provide details on the petition as the regulator is still investigating. – Ashley Erika O. Jose
