Cebu Gov. Hilario Davide III yesterday signed an agreement with transport groups to reduce mini-bus fares in the province.
Under the agreement, bus fares will be reduced from P6 to P5 for the first five kilometers, and P1.20 to P1 for the succeeding kilometers.
Davide welcomed the initiative of the bus operators,arising from lower diesel prices, saying this was a wonderful Christmas gift to the riding public.
But Reynaldo Elnar, acting regional director of the Land Transportation Franchising and Regulatory Board (LTFRB-7), said the Memorandum of Agreement still has to be approved by the central office before taking effect.
“We will prepare an order, ready for the signatures of the board members and the chairman. We will then forward it to Manila. If they don’t have issues about it, they’ll send it back to Cebu and then we implement it,” he said.
Conditions
During the Christmas party of transport groups at the Corominas Compound in Cebu City, Elnar said the agreement will take effect two to three days after a signed order is received from Manila.
“Transport groups cannot implement the reduction on their own because that would be undercharging, with a penalty of P3,000 under LTFRB terms and conditions,” he said.
Present during the signing were presidents of the Cebu Provincial Bus Operators Association (CPBOA), Cebu South Mini Bus Operators Association (CSMBOA), and Cebu North Mini Bus Operators Association (CNMBOA).
PBOA president Richard Corominas didn’t sign the document. He said bus operators complained that a P1 fare cut was impractical.
He said while oil prices went down over the past weeks, maintenance costs of buses remains high.
“The spare parts are expensive, tires are expensive, and lubricant is expensive. Should we decide to reduce our fare, how will we pay for maintenance? Our vehicles operate 24-seven,” he told Cebu Daily News over the phone.
Corominas said he asked his fellow signatories politely if he could abstain from signing.
He said he did not want to be blamed by his group should there be a mishap following the implementation, and because the group also did not reach a consensus.
Corominas said the LTFRB central office is expected to implement a rollback for buses and taxis nationwide in the first week of January next year. “That is what we will follow,” he said.
Confident
Still, CSMBOA President Julieto Flores said he remains positive that mini-bus fares will be reduced throughout the province.
Pending the approval of the actual petition to the LTFRB for bus fare reduction in the province, transport groups look to the MOA as a temporary arrangement for the public to enjoy lower fees.
Flores said the MOA will also be attached to their petition to strengthen it.
“I am confident that this will not go through a public hearing. Our petition is backed by an MOA signed by the governor himself,” he said.
Understanding
Flores said the last time a petition was made for fare reduction in 2011, it took four months to come to a decision.
He said he is sure it will take shorter this time around. Flores said it is a “one in a million” case, where the bus operators are the ones petitioning for a fare reduction.
“It’s usually us who file for a petition for fare increase, not the other way around,” he said.
Flores also asked for public understanding once transport groups file a petition for fare reinstatement. “If oil prices go up again, I ask the public to understand,” he said.
In 2008, LTFRB implemented a tariff of P8.50 for the first five kilometers and P1.40 for the succeeding kilometers.
The fare dropped to its present rate at P6 and P1.20 in 2011, during the time of former governor Gwendolyn Garcia, when the same transport groups petitioned for a fare reduction. Elnar said the MOA would spare the parties concerned of the time, effort and expense of holding public hearings and paying for published announcements of the fare rate reduction.