MANILA – Jeepney fares should be increased up to ₱30 to ₱40 to cover the daily expenses of transport cooperatives that acquire modernized jeepneys, which may cost up to ₱7,000 a day, according to a lawmaker.
On Wednesday during the House Transportation panel’s inquiry into the public utility vehicle (PUV) modernization program, 1-Rider Rep. Bonifacio Bosita said that transport operators who acquire modern jeepneys would have to earn up to ₱7,000 a day to finance just one unit worth nearly ₱3 million.
Jeepney fare currently sits at ₱13 for traditional vehicles, and ₱15 for modernized units. In 2017, a modernized jeepney was projected to cost ₱1.6 million. But, prices have shot up and one unit is now reported to cost ₱2.8 million.
Cooperatives paying off ₱2.8 million at 6% interest for seven years may have to pay ₱40,000 a month to finance just one unit, the lawmaker said.
Based on his own computation, Bosita said that with fuel, facilities, cooperative management, maintenance, mandatory expenses, and drivers’ wages, transport cooperatives should have a daily target earning per unit of up to ₱7,000.
Bosita asked the Land Transportation Franchising and Regulatory Board (LTFRB) for their assessment on what jeepney fare should be to cover cooperatives’ increased cost of acquiring modernized PUVs.
The LTFRB did not offer a concrete answer and said if there was going to be a fare increase, it would be governed primarily by the current cost of fuel.
“When we try to do adjustment in the fare, it’s in prudence din po sa fuel price but in the evaluation, I think that those who are in a better position to determine is banks po, yung current computation nila dun sa mga babayaran na amortization is based on the current fare as regulated by the LTFRB,” an official of the transport board said.
Unsatisfied with the answer, Bosita responded: “Kung hindi po ako nagkakamali dito sa aking analysis, ang ₱15 na pamasahe sa pampasaherong jeep, hindi po kayang ma-implement ito or ma-avail ng ating mga kababayan para bayaran ang lahat ng mga obligasyon.”
“Kung wala ang LTFRB na assessment, based on my personal evaluation magiging ₱30 to ₱40 ang pamasahe ng ating kababayan para ma-cover yung dapat bayaran,” Bosita said.
Transport groups and think-tanks have also pointed out that for the modernization to be feasible, fare hikes would be needed to cover the cost.
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