PROVINCIAL and city bus operators have asked President Ferdinand R. Marcos Jr. to lift the suspension of a fare increase approved by the Land Transportation Franchising and Regulatory Board (LTFRB) earlier this year, warning that regulated fares no longer cover the cost of keeping buses on the road. However, the President is cool to the plea to allow it, worried by the impact on commuters already reeling from inflation.
In a letter coursed through Executive Secretary Ralph G. Recto, the Nagkakaisang Samahan ng Nangangasiwa ng Panlalawigang Bus sa Pilipinas Inc. (NSNPBPI), formerly the Provincial Bus Operators Association of the Philippines (PBOAP), said rising costs have already disrupted dispatches, forced layoffs, and delayed loan payments among its members.
‘The cost of increases of diesel, parts, toll and wages can no longer be absorbed by the bus operators as the regulated revenue is lower than the cost of operations,’ NSNPBPI Executive Director Alex Yague Jr. said in the letter.
The appeal calls for ‘the immediate lifting of the directive suspending the fare adjustment order’ approved by the LTFRB in March.
Concerned over the additional financial burden a fare hike will impose on commuters, President Marcos is ‘not inclined’ to support the said proposal for now, according to Malacañang.
Instead, the chief executive wants to keep providing support to PUV drivers and operators and other vulnerable sectors reeling from the high pump prices caused by the Middle East conflict.
‘At present, there is no real inclination [from the President] to raise fares for the public, but we are not closing the door to the possibility,’ Palace Press Office Claire Castro said in Filipino in a press briefing on Tuesday.
‘We are still pressing the government to explore other measures to assist drivers and transport operators without passing the burden on to commuters; a fare hike should ideally be our last resort,’ Castro said.
Currently, she said the Department of Transportation (DOTr) continues its measures to support the PUV through fuel discounts, free tolls for buses.
Castro said in the last Unified Package for Livelihoods, Industry, Food, and Transport (Uplift) Committee meeting last week, Executive Secretary Recto said the government has sufficient funds to sustain providing cash subsidy to transport groups through the Assistance to Individuals in Crisis Situation (AICS) of the Department of Social Welfare and Development (DSWD).
Another measure being considered by the government, Castro said, was the suspension or reduction of excise taxes on petroleum products.
This, after the Department of Energy (DOE) issued a certification that the price of crude oil has already breached the US$80 dollar per barrel two weeks ago, allowing the suspension or reduction of the said excise taxes under the Republic Act No. 12316.
Castro said the President is just waiting for the recommendation of the Development Budget Coordination Committee (DBCC) before he decides on the matter.
‘We have received an update regarding that, and their recommendation is nearing completion; most likely, they will be able to submit it to the President by this week,’ she said.
To recall, not even a full day since it was approved Mr. Marcos ordered the suspension of the fare adjustments, citing the effects of increased fares to provide relief to commuters.
Under the suspended approved adjustments, the minimum fare for traditional jeepneys rises by P1 – from P13 to P14 – with the per-kilometer rate increasing from P1.80 to P2.
Modern jeepneys will see a steeper P2 hike, bringing the minimum fare from P15 to P17, while the succeeding-kilometer rate moves up by 10 centavos to P2.30.
For Metro Manila and city ordinary buses, the minimum fare for the first five kilometers increases by P2 – from P13 to P15 – with the per-kilometer charge rising from P2.25 to P2.49.
Air-conditioned city buses get a P3 hike to P18 for the first five kilometers, with succeeding kilometers rising from P2.65 to P2.98.
Provincial ordinary buses will see a P1 hike for the first five kilometers, with varying per-kilometer increases depending on bus type – 30 centavos for ordinary buses (P1.90 to P2.20), 35 centavos for air-conditioned deluxe and super deluxe buses (P2.10 to P2.45), and 45 centavos for luxury buses (P2.90 to P3.35).
Transport network vehicle services (TNVS) will have their base fares raised by P20 plus a P15 pick-up fee, pushing sedan base fares from P45 to P65, AUVs from P55 to P75, hatchbacks from P35 to P55, and premium TNVS from P145 to P165. Per-kilometer and per-minute charges remain unchanged.
Airport taxis see the largest proportional jump: the flag-down rate rises P40 – from P75 to P115 – though charges for succeeding distance and waiting time stay the same.
Overall, the adjustments reflect a 19 percent increase in fares across all regions.
Fuel spells 60 percent of costs
The operators said fuel now accounts for about 45 to 60 percent of their operating costs, while authorized fares have not kept up with the actual cost of service.
They also said land transport is at a disadvantage compared with other modes.
‘Airlines and sea transport operators may impose fuel surcharges in response to extraordinary fuel-price increases. Provincial and city buses cannot independently impose a similar surcharge,’ the groups said.
The operators also cited a tax problem. Passenger fares are not subject to value-added tax (VAT), but the fuel they buy is. Because fares generate no output VAT against which the VAT on fuel can be credited, operators said that tax ‘becomes part of our cost-a burden the bus operator must absorb.’
Modernization loans, wage hike
The groups said operators took out ‘substantial loans’ to modernize their fleets as the government required. They now carry the combined costs of fuel, modernization loans, spare parts, tires, maintenance, insurance, toll fees, and regulatory compliance.
They added that an impending wage increase would add further pressure.
‘We recognize that our employees deserve fair compensation. But higher wages must be supported by revenues sufficient to sustain both employment and operations,’ they said.
The operators stressed that they are not seeking government aid.
‘We are not asking the government for ayuda. We are not asking taxpayers to carry our businesses,’ the appeal read. ‘We are asking for a fair and sustainable fare that reflects the real cost of operating public transportation.’
‘Not a threat’
The groups said operators cannot raise fares on their own, impose a fuel surcharge, cut corners on safety or maintenance, or halt operations without risking the loss of their franchises.
‘This is not a threat to stop operations. This is a notice that operations may soon become impossible,’ they said.
The operators warned that if responsible operators are pushed into insolvency, commuters would face fewer buses, fewer trips, longer waits, and lost links between cities and provinces. Thousands of drivers, conductors, mechanics, and support staff would also lose their jobs.
‘We understand that fare adjustments affect commuters. But keeping fares artificially below the actual cost of service does not protect the public in the long term. It merely delays the crisis until operators can no longer deploy enough safe and roadworthy buses,’ they said.
The groups urged the government to ‘act now-before more buses can no longer leave their terminals.’