INQUIRER.NET PHOTO / ARNOLD ALMACEN
A COMPUTATION for automatic fare adjustments as based on fuel price movements has been finalized by the Land Transportation Franchising and Regulatory Board (LTFRB). The fare computation was formulated so that public utility vehicles (PUV) may adjust fares without having to file an appeal or consult the public.
The formula considers adjustments in pump prices and the share of fuel costs in PUV drivers’ total expenses. If the current price of fuel were to rise by 10%, for example, then the current base fare of P9 and P1.40 per succeeding kilometer will compute to P9.315 and P1.449 per succeeding kilometer. The computation is based on the formula of: P9[1+(.10)(.35)] + 1.40[1+(.10)(.35)] = P9.315 (base fare) + P1.449 (per succeeding kilometer).
The formula assures there would only be fare adjustments if fuel price changes were to fall within increments of 5- or 10-percentage points.
The fare formula is contained in LTFRB Memorandum Circular No. 2019-35. It was signed on July 26 by the agency’s board and is now the standard in adjusting fares for PUVs.
Transportation Secretary Arthur Tugade earlier this year ordered the LTFRB to come up with an automatic fare adjustment formula when the agency approved four fare movements in less than six months because fuel prices fluctuated at the time.
A report published today in the Philippine Daily Inquirer said some transport groups are opposing the fare formula. It quoted Piston president emeritus George San Mateo as saying the formula “was clear evidence of deregulating public transport fares.”
“The problem here is that because of deregulation and overpricing in oil prices, hikes are always much higher than oil price rollbacks, so we are more than likely to experience an unabated rise in fares,” he said.
Association of Concerned Transport Organizations president Efren de Luna said the lack of public consultation would remove checks and balances in runaway adjustments, according to the Inquirer report.
“Even though it was an arduous process, having public hearings and consultations are important to be able to hear not just the side of the driver-operators but also of the commuters. By acting on a formula-based adjustment, it removes the voice of the commuters, who are going to unduly suffer the brunt of this new policy,” he said.
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