Passenger bus firm Victory Liner on Tuesday called on the national government to lift the suspension of fare hike implementation, noting that the rising cost of fuel and other concerns may paralyze operations of provincial and city buses.
The Land Transportation Franchising and Regulatory Board (LTFRB) approved an across-the-board provisional fare hikes for traditional and modern jeepneys, buses, taxis, and ride-hailing services last March.
However, President Ferdinand Marcos Jr. ordered the suspension of the fare hike before it was even implemented, saying that it was not yet the time to increase fare due to the ongoing tension in the Middle East.
Victory Liner emphasized that they do not ask for aid or ayuda, but a reasonable fare that ‘will keep public transport moving.’ It noted that as fuel prices increase, fuel accounts for approximately 45-60 percent of their operating costs.
‘If responsible operators are pushed into insolvency, commuters will ultimately suffer: fewer buses, fewer trips, longer waiting times and the loss of vital connections between cities and provinces. Thousands of drivers, conductors, mechanics, and support personnel will also face the loss of their livelihoods,’ it said in a statement.
‘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,’ it added.
The firm then underscored that the call is not a threat to stop their operations, but a ‘notice’ that operations may be hampered.
Victory Liner also said that the land transport ‘is placed at a distinct advantage’ among other modes of transportation as airlines and sea transport can implement fuel surcharges. It noted that provincial and city buses cannot impose fare hikes on their own as they have to operate under regulated fares.
It then pointed out that passenger fares are not subjected to value-added tax (VAT) while the tax is imposed on the fuel they use for their operations. It noted that the tax becomes part of their cost as their sales do not generate output VAT against which the fuel VAT may be charged on.
Aside from these, the firm said that maintenance of their fleets also requires combined cost of fuel, modernization loans, toll fees, and other maintenance costs.
While it also recognized that employees deserve to be well compensated, it added that the pending wage increase ‘will add further pressure’ as ‘higher wage must be supported by revenues sufficient to sustain both employment and operations.’