Bus fare hike looms

MANILA, Philippines – After approving the fare hike petitions for taxis and public utility jeeps, the Land Transportation Franchising and Regulatory Board (LTFRB) is set to deliberate on and resolve the petition for fare increases for passenger buses plying city and provincial routes.

LTFRB Board Member Manuel Iway said pending for their resolution are the petitions for fare increase filed by the Intercity Bus Operators Association (InterBOA) and the South Luzon Bus Operators Association (SOLUBOA).

After the toll hike on the South Luzon Expressway took effect last January 1, SOLUBOA filed its petition to increase ordinary provincial bus fare rates from P1.30 to P1.80 per kilometer and air-conditioned provincial bus fares from P1.60 to P2.10 per kilometer.

InterBOA followed suit when it asked government permission to hike ordinary city bus fares from P9 to P14 for the first five kilometers and from P1.85 to P2.55 per succeeding kilometer and air-conditioned city bus fares from P11 to P17 for the first 26 kilometers and from P2.20 to P2.90 per succeeding kilometer.

While SOLUBOA’s primary reason for its petition is the 300 percent toll hike at SLEx, the InterBOA justified its petition by saying that price increases of spare parts and oil products have led to profit losses on the part of bus operators.


But Iway said that both SOLUBOA and InterBOA failed to present financial documents and other evidences to prove their claims of profit loss during the separate hearings held last January 27 and February 3, respectively.

“We have both given them 10 days to submit the documentary evidences to back up their petition and another 10 days to submit position papers to the LTFRB and the oppositors. Only after then can we resolve the petitions at hand,” he said.

Iway said it is possible that the LTFRB will decide on the fare hike petitions for provincial and city buses within the month or early in March.

“But so far, we find their fare hike petition as too exorbitant, especially the InterBOA. Based on historical figures, ordinary city bus fare was pegged at P9 when a liter of diesel costs P42.05 in May 2008. Currently, diesel is at P41 a liter,” he added.

Iway said SOLUBOA and InterBOA have to also “prove with hard evidence” their need for provisional fare increase.

SOLUBOA reportedly asked for a provisional increase of P0.30 per kilometer for provincial buses while Inter BOA wants to hike ordinary city bus fares from P9 to P11.50 and from P1.85 to P2.35 per succeeding kilometer, and air-conditioned city bus fares from P11 to P15 and from P2.20 to P2.70 per succeeding kilometer.

source: Manila Bulletin