Home / News / ₱50 fare hike under PUV modernization program ‘impossible’ – DOTr

₱50 fare hike under PUV modernization program ‘impossible’ – DOTr

(FILE PHOTO)

Metro Manila (CNN Philippines, January 4) — The Department of Transportation (DOTr) refuted an earlier claim that the minimum fare in jeepneys could increase up to ₱50 under the government’s public utility vehicle modernization program.

The department made the statement in response to a claim by think tank IBON Foundation that the program could precipitate a major fare hike.

“Fare increase petitions are always subject to the Land Transportation Franchising and Regulatory Board (LTFRB) en banc deliberation,” the DOTr said in a statement Thursday. “It will also require NEDA opinion as to the inflationary effect of any increase as well as giving due consideration to affordability of the commuting public.”

The DOTr said the main factor in considering fare increases in public transportation is the cost of fuel.

The current minimum fare in traditional jeepneys is ₱13, while modern jeepneys charge ₱15.

The PUV modernization program started in 2017 and aims to improve and make the transport sector more environmentally sustainable. But operators fear that they could fall into debt as a unit of modern jeepney costs more than ₱2 million.

After the Dec. 31 deadline for jeepney operators to consolidate into cooperatives, unconsolidated jeepneys will only be allowed to ply their routes until Jan. 31.

Meanwhile, the LTFRB also said that a ₱50 minimum fare is unlikely to happen.

“Noon pa man ay binabalanse na ng LTFRB ang pangangailangan ng mga tsuper at komyuter kapag tumataas ang presyo ng petrolyo. Kaya naman ho, walang lohika ang sinasabi nilang P50 na pamasahe sa loob ng limang taon,” said LTFRB chairperson Teofilo Guadiz III.

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