P25 fare increase: Jeepney drivers to demand this hike if…

Piston head says this will happen if the PUV modernization program will be fully implemented

CEBU CITY, Philippines – Ordinary passengers who rely on commuting on a daily basis will face a much greater burden in their budgets, as jeepney drivers will demand higher minimum fares, potentially increasing by up to P25, if the Public Utility Vehicle Modernization (PUVM) program is fully implemented.

Gregory Perez, head of the Pinagkaisang Samahan ng mga Tsuper at Opereytor Nationwide (PISTON) Cebu Chapter, explained that the demand for higher fares was due to the pressure on drivers to repay loans taken for the purchase of modernized jeepneys.

“Ang basis ana kay mapressure atong mga jeepney drivers sa bayranan sa bangko, utang man gud na, mapressure sila sa mga modernong sakyanan kay nanginahanglan man gud sila og P45,000 kada bulan nga i-bayad nila sa bangko,” Perez said in an interview with CDN Digital on Thursday, May 2.

(The basis for this is that the jeepney drivers will be pressured to pay the bank, this is a loan so they are pressured to pay the loan for the modern vehicle because they will need P45,000 a month to pay the bank.)

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Perez further explained that due to the higher installment payments for the modernized jeepneys, jeepney drivers would have no other choice but to increase their minimum fare up to P40.

“Og dili na nila buhaton, kulang kaayo ang ila kita para ibayad ra sakyanan,” he said.

(If they will not do that, their earnings won’t be enough to pay for the vehicle.)

Meanwhile, the Department of Transportation (DOTr) Undersecretary for Planning and Project Development, Timothy John Bata, stated in January this year, that no fare hike should occur without undergoing the process of the Land Transportation Franchising and Regulatory Board (LTFRB).

He said that with the implementation of our consolidation deadline, a fare hike would not be expected.

“We are giving a reminder to our commuters that the 300, 400 percent [fare] increase they are hearing about has no basis, and we don’t expect that much of an increase in our consolidation and PUVMP,” he said.

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DOTr Secretary Jaime Bautista has also refuted the assertion made by a commuters’ group regarding the potential increase of the minimum fare for modern jeepneys to P50 and clarified that the primary factor influencing any fare adjustment in public transportation would be the cost of fuel.

“We strongly believe there is no basis for the alleged P50 minimum fare,” he said.

He said that fare increase petitions undergo en banc deliberation by the Land Transportation and Franchising Regulatory Board (LTFRB).

Bautista further stated that NEDA (National Economic and Development Authority) opinion would be necessary regarding the inflationary impact of any increase, and consideration would be given to the affordability of the commuting public.

It was mentioned that the basis for the fare increase would be for operators to pay for the loans, in addition to earning a living.

The current minimum fare stands at P13 for traditional jeepneys and P15 for modern jeepneys.

In 2017, at the outset of the PUV modernization program, the minimum fare was P9 for traditional jeepneys and P11 for modern jeepneys.

“This showed that LTFRB has always balanced the need of drivers against commuters when fuel price increase happens,” Bautista said.

As part of the modernization program, the consolidation deadline for jeepney operators and drivers – the initial phase of the program – was set for Dec. 31, 2023.

However, the deadline was extended to April 30, 2024. Jeepney operators and drivers who did not participate in the PUV modernization program will not be allowed to continue operations beyond the given date. They will now be classified as “colorum” vehicles and will be apprehended by authorities.