DOTC chief grants P.50 and P1-1.50 fare hike to jeepneys, buses
The P0.50 and P1-P1.50 provisional increase in the minimum fare of jeepneys and buses, respectively, takes effect 12:01 a.m. today, Wednesday, after Transportation Secretary Leandro Mendoza announced the granting of the increase yesterday.
Land Transportation Franchising and Regulatory Board (LTFRB) regional director Porfirio Clavel, in a telephone interview yesterday afternoon, confirmed the late notice from the Department of Transportation and Communication (DOTC).
Clavel said they received the late notice from DOTC that Sec. Mendoza granted the increase it deferred last Monday.
As a result Clavel said starting today the regular fare for jeepneys will already be P7.50 from the prevailing P7.00. The fare for students and the elderly will increase from P6.00 to 6.50.
Clavel clarified that the increase applies nationwide.
Earlier, transport groups on Panay Island called on the government to heed their demand for the removal of taxes on oil products instead of implementing a fare increase.
The Hugpong Transport Alliance, composed of drivers and operators of jeepneys, tricycles and vans, said the deferment of the planned provisional increase on transport fare "showed that the government is merely interested in appeasing restive drivers and operators and not provide relief to the public."
"The fare increase even if implemented will not cover the almost P10 per liter increase in oil products and the relief would only be temporary," said Edgar Salarda, Hugpong Transport convenor and coordinator in Panay of the Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (Piston).
The DOTC announcement that it granted the provisional increase came a day after Sec. Mendoza suspended the fare hike announced by the LTFRB because of a pending review of other support measures intended to cushion the impact of higher oil prices.
Among those being considered is a P2 fuel subsidy and access to government-subsidized rice and tax exemption for spare parts for the transport sector.
But Salarda said the measures to cushion the impact of the oil price increase should not be "selective."
"A fare increase would also hit consumers and families of drivers because this will lead to higher prices of commodities," said Salarda in a telephone interview.
He said the government should instead heed their demand to remove 12 percent expanded value added tax on oil products and repeal the Oil Deregulation Law to control the runaway prices of petroleum products.