Fare hike illegal

source: mb.com.ph

MANILA, Philippines -- The fare hike now being implemented by provincial buses is illegal.

The Land Transportation Franchising and Regulatory Board (LTFRB) said this yesterday, adding that operators risk losing their franchise for overcharging.

LTFRB Board Member Manuel Iway said there is no legal basis for members of the Provincial Bus Operators’ Association of the Philippines (PBOAP) to increase fares even if there is a consolidated LTFRB ruling dated May 17, 2008, that allowed them to charge P1.40 per kilometer for ordinary provincial buses, P1.60 for regular air-conditioned buses, and P2.20 for luxury airconditioned buses.

Iway said the May 17, 2008 ruling was already outdated by a December 4, 2008 ruling that allowed provincial buses to charge P1.35 per kilometer, on top of the P8.50 charge for the first five kilometers.

“As far as the LTFRB is concerned, the ruling dated December 4, 2008 is still in effect. If provincial buses want to increase fares, they should file a new fare hike petition and wait for us to resolve the petition before they could implement any fare adjustment,” Iway said.

Iway said PBOAP's increase in fare effective 12:01 a.m. yesterday is illegal and that the LTFRB is gathering evidence to identify the operators who will violate the December 4, 2008 ruling.

“We will send show-cause orders to these operators so they could explain why they have overcharged. If they cannot justify their actions, we can either suspend or revoke their franchises,” he said.

Iway also urged commuters, especially those who will spend the Holy Week in the provinces, to report erring provincial buses that will take advantage of the season to overcharge.

“We encourage commuters to report to us incidents of overcharging, and we will do the rest,” he added.

But PBOAP president Alex Yague stressed that his group has the right to implement the May 17, 2008 ruling.

“The approved LTFRB rate for ordinary buses as of May 17, 2008 is 1.40/km. This was partially implemented before, but with the diesel price increase of almost 50 percent, bus companies are now implementing the approved rates,” Yague said.

Gov’t helpless?

In another development, President Benigno S. Aquino III has called on the public to boycott smoke-belching public transportation vehicles and unethical private emission testing centers, apparently underscoring the government’s helplessness against smoke-belchers.

“I-boycott natin yan hanggang sa umayos-ayos ang kondisyon nila,” Aquino said during the 10th Student Catholic Action of the Philippines (SCAP) national leadership conference at the St. Paul University in Manila yesterday. [“Let’s boycott smoke-belching public vehicles until their conditions improve.”]

He said 80 percent of the air pol¬lution in Metro Manila is caused by motor vehicles.

Meanwhile, the Makabayan Coalition has joined calls for a freeze on the 12 percent value-added tax (VAT) on oil and oil products.

In a petition submitted yesterday to Finance Secretary Cesar Purisima, the eight-member coalition said a freeze will mitigate the sufferings of millions of poor people.

The coalition argued that the P450-million Pantawid Pasada Program embodied in Executive Order No. 32 is a stop-gap measure that does not even provide a P1-cut in pump prices for two months.

Makabayan is comprised by Bayan Muna, Anakpawis, Gabriela, ACT Teachers, Kabataan, Katribu, Courage, and Migrante. It has seven representatives in the 15th Congress.

Signed by Makabayan president Satur Ocampo, vice president Liza Maza and spokesman Bayan Muna Rep. Teodoro Casino, the petition said the freeze “would mitigate the burden of rising oil prices and would have more substantial impact than the P450-million Pantawid Pasada Program ordered by President Aquino last week.”

source: mb.com.ph