Commuters will be feeling the brunt of the oil price hikes too.
On Tuesday, March 17, the Land Transportation Franchising and Regulatory Board (LTFRB) handed out its decision on the fare adjustment petitioned by transport groups for the benefit of public utility vehicle (PUV) operators and drivers.
According to the agency, led by its Chairman Vigor Mendoza II, the said decision was made to have a “good balance” between the welfare of millions of commuters and the interest of those working in the public transportation sector amid the continued surge in oil prices around the world.
Mendoza explained that the computation for the fare hike was “thoroughly deliberated” and “supported by data and analysis, including that of the Department of Economy, Planning, and Development (DEPDev).“
“This decision that covers all modes of land public transportation is proof of the national government’s genuine concern on the welfare of those in the transport sector too while protecting the interest of the general commuting public,” said Chairperson Mendoza. “And this is timely because the transport sector is currently facing a serious challenge on the prices of petroleum products as a result of the Middle East tensions.”
JEEPNEYS
Based on the decision, the LTFRB approved a PHP1 increase for the first kilometer or minimum fare, and 20 centavos for every succeeding kilometer for traditional jeepneys—up from the previous PHP1.80 to PHP2 per succeeding kilometer. Hence, from the existing PHP13, the minimum fare for traditional jeepneys would now be PHP14.
For modern jeepneys, the approved increase is PHP2, putting the minimum fare to PHP17 from PHP15. Moreover, a 10-centavo increase in the succeeding kilometer, or from PHP2.20 to PHP2.30 per succeeding kilometer, was also set.
AIRPORT TAXIS AND TNVS
Meanwhile, for airport taxis, the LTFRB also approved a PHP40 increase in the flag-down rate, or for the first 500 meters of the ride—making the new flag-down rate PHP115 (from PHP75).
Although, it was noted that while the flag-down rate has increased, there will be no changes in the succeeding 300 meter and two-minute waiting time charge.
For the Transport Network Vehicle Services (TNVS) like Grab, the LTFRB approved a PHP20 increase and PHP15 pick-up fare per kilometer.
This makes the base fare for PHP65 (from PHP45) for sedans; PHP75 from PHP55 for AUVs; PHP55 from PHP35 for hatchback and PHP165 from PHP145 for premium TNVS.
The LTFRB, however, emphasized that there is no increase in the per kilometer and per minute travel time for TNVS.
As for the ordinary taxis and UV Express, Mendoza said the petitions for fare hikes have just been filed by transport groups representing them, with these cases still up for deliberations.
BUSES
Mendoza also announced a PHP2 increase for the minimum fare of Metro Manila and city ordinary buses—changing the fare from PHP13 to PHP15 for the first five kilometers.
And for every succeeding kilometer, there is a 0.24 centavos increase, pushing it from PHP2.25 to PHP2.49.
On the other hand, the aircon buses for Metro Manila and city operations will have a PHP3 increase, or from PHP15 to PHP18 for the first five kilometer and 33 centavos increase for every succeeding kilometer (from PHP2.65 per kilometer to PHP2.98).
Meanwhile, for passengers of ordinary buses with provincial operations, a PHP1 increase was approved for the first five kilometers but the increase in the succeeding kilometers varies depending on the types of passenger buses.
For ordinary buses, the additional charge is 30 centavos per succeeding kilometer (from PHP1.90 to PHP2.20); 35 centavos addition for airconditioned buses deluxe and super deluxe buses (from PHP2.10 to PHP2.45); and, 45 centavos more for luxury buses, or from PHP2.90 to PHP3.35 per succeeding kilometer.
According to Mendoza, his office took note of the position papers of various stakeholders, the series of public consultations, and land public transportation cost analysis since the last fare hike for passenger buses since September 2022.
He cited the increase in maintenance and other operational costs from 7.54% during the last bus fare hike in 2022 to 54.29% in 2024 as a key factor for the fare increase, followed by the geopolitical tension that include the wars in Ukraine and Iran, and the wage increase for workers across the country since the last fare hike in 2022.
“It took time before the decision on jeepneys were approved since it is the main mode of transportation in the country and any increase will have an effect on consumer price index or CPI,” noted Mendoza.
In the case of the passenger buses, the LTFRB Chairperson Mendoza said they had no complicated issues in resolving the fare increase petition for passenger buses since the DEPDev said passenger buses have a minimal share in the CPI basket with 0.58 percent.
The provisional fare hike for provincial buses was approved despite the expected distribution of P5,000 fuel subsidy starting next week, the agency noted.
Mendoza said the new fare adjustment will take effect as soon as the bus operators obtain a fare matrix and post them in their respective units.
But the LTFRB, in its directive, also cited conditions for the full implementation, including granting a 20% discount to senior citizens and PWDS, and for students—everyday during school days.
“Notwithstanding the fuel subsidy distribution, the Board is more than mindful of the extraordinary increases in fuel prices currently experienced by PUV operators,” it read.
Overall, the LTFRB chief said the fare hike adjustments reflect a 19% increase in fares across all the regions.