REPUBLIC OF THE PHILIPPINES Department of Transportation LAND TRANSPORTATION FRANCHISING AND REGULATORY BOARD East Avenue, Quezon City IN RE: PETITION FOR FARE INCREASE OF THE FARE OF PUBLIC UTILITY JEEPNEY SERVICE IN NATIONAL CAPITAL REGION. Case No. 23-24667 PANGKALAHATANG SANGUGUNIAN MANILA & SUBURBS —_ DRIVERS ASSOCIATION NATIONWIDE, _INC., (PASANG MASDA); ALLIANCE OF TRANSPORT OPERATORS AND DRIVERS ASSOCIATION OF THE PHILIPPINES (ALTODAP); and = ALLIANCE = OF CONCERNED TRANSPORT ORGANIZATION (ACTO), Petitioners. ORDER For resolution is the prayer for an order granting a Provisional Fare Increase of ONE PESO (PhP1.00) for Traditional Public Utility Jeep (TPUu) relative to the Petition for Fare Increase filed by the Petitioners on 22 August 2023, Under the same Petition, the Petitioners are asking for an additional FIVE PESOS (PhPS.00) for the first four (4) kilometers and to adjust the fare for every succeeding kilometer by ONE PESO (PhP1.00), arguing and alleging as follows: “Xxx 19. This August 2023, there were adjustments in the price of diesel. A little decrease, but a big time increase that took place weekly. Xxx" 20. To make matters worse, ‘(i)he pump prices of gasoline, diesel and kerosene are set to increase on Tuesday, August 22, several oll companies announced on Monday. (citation omitted) 21.Xxx 22. Considering the weekly increase of the price of diese! which at this point is unabated, the Petitioners have been losing more and more of their income. Without any fare increase, PUJs will no longer be able to bear the increases in fuel cos! 23. [tis high time to grant a further fare increase, considering that commuters have an increased paying capacity resulting from the minimum wage increase implemented in NCR last 30 June 2023, DOCKETED, By: ee bare: onCase No. 23-24867 ORDER dated 03 October 2023 Page 2 of 4 24. With the Minimum Wage increased by Php40.00 for employees in the NOR, a minimum wage earner now earns Php573.00-Php610.00, hence is more than capable of paying for the sought fare increase, and more so, the sought provisional increase. 25. Xxx. 26. The Petitioners also secured the support of the National Center for Commuters Safety and Protection, Inc. (NCCSPI) for the P1.00 Provisional Increase as they themselves understand the hardships of the PUJ sector.” Ithas become of public knowledge that there were several increases in fuel prices in recent weeks, further straining the viability of public transport operators, especially the petitioners herein, to continue to ply their routes. The Board, however, is not unmindful of the overriding interest of the riding public which the Board is duty-bound to protect. RULING Section 5 (c) of Executive Order No. 202, provides for the Powers and Functions of the Board, provides, thus: "c, To determine, prescribe and approve and periodically review and adjust, reasonable fares, rates and other related charges. relative to the operation of public land transportation services provided by motorized vehicles:” The Board, in determining the increase or decrease in fare and other charges depends on the economic factors affecting the operating costs, among which is the pump price of fuel, in relation to the transport demand and the best interest of the riding public in general. As the Philippine economy was gravely affected by the onslaught of the COVID- ity of the Government to enable the nation to recover from its current economic state and to push for policies and programs that will improve the economy. Moving people and goods is a primordial factor in improving our country’s economy. Last July 2023, the declaration of the state of public health emergency throughout the Philippines due to COVID-19 was lifted, thus a surge in demand for public transport. However, the steady rise of prices of fuel, a major component in the operation of public utlty vehicles, has brought another challenge to keep our public transport services Tunning. Operators and drivers must continue to operate the PUJ services for the benefit of the riding public. Through the stewardship of the government economic managers and upon the initiative and guidance of the Department of Transportation (DOTr) and the Board, the latter has implemented several programs such as the Fuel Cash Subsidy Program and A DO! TED By: fe a DATE:Case No. 23-2467 ORDER dated 03 October 2023, Page 3 of 4 the Service Contracting Program, that directly benefit both the Public Utility Vehicles (PUVs) and the riding public to alleviate the impact of the fuel increase. As earlier stated, while the Board recognizes the plight of the Filipino people every time an increase in the price of commodities occurs, including the cost of public transport, it cannot be insensitive to the clamor and plight of the PUV operators and drivers who are responsible in ensuring a steady supply of public transport services. It is noteworthy that the PUJ service, to which mode of public transport the petitioners belong, carries the most number of ordinary commuters on a daily basis. It is the mandate and duty of the LTFRB to judiciously balance the economic viability of the industry and the welfare of the riding public. Based on the price monitoring issued by the Department of Energy, the fuel pump price per liter of Diese! as of 25 July 2023 is PhP49.95'. As of 02 October 2023, however, the price of Diesel fuel increased to as high as PhP73.75°. WHEREFORE, upon careful consideration, finding the Motion for Provisional Fare Increase to be MERITORIOUS and pursuant to Section 5 (c) of Executive Order No. 202 in relation to Section 16 (c) of the Commonwealth Act 146 otherwise known as "The Public Service Act” as amended, the Board hereby resolves to GRANT the prayer for ONE PESO (PhP1.00) PROVISIONAL FARE INCREASE. FURTHER, the Board En Banc, pursuant to its power, HEREBY motu proprio APPLIES this PROVISIONAL FARE INCREASE to all PUBLIC UTILITY JEEPNEY Services NATIONWIDE, whether MODERN or TRADITIONAL, subject to the following terms and conditions: 1. Public Utility Jeepney (Modem and Traditional) Services authorized to operate are provisionally authorized to increase fare in the amount of ONE PESOS (P1.00) for the first four (4) kilometers, but no increase in the succeeding kilometers. In ‘sum, the fare is now provisionally adjusted to wit: ¢ TRADITIONAL PUJ - THIRTEEN PESOS (PhP13.00) for the first four (4) kilometers; and * MODERN PUJ - FIFTEEN PESOS (PhP15.00) for the first four (4) kilometers. 2. The provisional fare increase shall be applicable Nationwide for PUJs serviges; 3, The usual discount for qualified Filipinos (e.g. PWD, Senior Citizens, students et. al, ) must be granted upon presentation of valid identification cards; and - https://vwrw.doe.gov.phisites/cefault/les/pat/price_watch/petro_ncr_2023-jul-28.pdt * nttps://wrww.doe gov.ph/sites/default/files/pd/price_watch/petro_ncr_2023-sep-28.pdf Beas BY: _2et% DATE:Case No. 23-24867 ORDER dated 03 October 2023 Pago 4 of 4 4, In the imposition of the provisional fare the franchise grantee shall comply with the terms and conditions of the Certificate of Public Convenience, the Public Service Act, and all issuance of the Board. MEANWHILE, the Board En Banc shall continue to hear, deliberate, and thereafter resolve the main issues contained in the Petition filed by the Petitioners on 22 August 2023, This Decision shall be effective on 08 October 2023 SO ORDERED. Quezon City, Philippines. 03 October 2023. Toh K oe Atty, EQFILO E. GAD: \CESO V Chairperson’ Engr. RIZA MARIE TA\ ES, MNSA Atty. MERCY J) BARKAS-LEYNES, LL.M 8 er Bogrd Mpmber Attested by: ‘Atty. ROBERT D. PEIG, CESOV Executive Director (Copy Furnished: ROBERTO "KA OBET" MARTIN (PASANG MASDA) 2109 Laon Laan St, Sempaice, Manila MELECIO “BOY" VARGAS (ALTODAP) Le B15 Apolo Ext, Crest View Homes, Antpoio Cay LIBERTY “LIBAY” DE LUNA (ACTO) ‘310 Redrguez CPD, Lisi Tipa, Taguig Cy ATTY. NIGHELLE ANN ML CABOG-BERGONIA ‘Counsel for Petitioners 2106, Laon Laan St, Sampstoc, Manis THE SOLICITOR GENERAL ‘194 Amorsolo St, Legal Vilage, Makati Cy ‘THE COMMISSION ON AUDIT ‘Comsmonwestn Avenue, ian, Quezon Cy NATIONAL COUNCIL FOR CONSUMERS SAFETY PROTECTION (NecSP) 420 Atherton Pace JCRV Big, Tomas Morato coe. A. Rocas Ave, Brgy aging Handa, Quezon Cy