Commuters brace for a significant shift in their daily budgets as transportation costs are set to rise across the board. The Land Transportation Franchising and Regulatory Board (LTFRB) has approved fare increases for nearly all public utility vehicles, a direct response to the relentless surge in fuel prices that’s gripping the nation.
The decision, announced Tuesday, isn’t a temporary fix. LTFRB Chairman Vigor D. Mendoza II emphasized the permanence of the adjustments, stating they reflect a consistent pattern of substantial oil price increases. Operators will begin implementing the new fares as soon as they receive and display updated fare matrices, with the changes fully in effect by June.
For traditional jeepneys, the base fare jumps to P14, with an additional 20 centavos charged for each kilometer traveled. Modern jeepneys will see a slightly larger increase, with a new base fare of P17 and a per-kilometer charge of P2.40. These adjustments ripple through all modes of public transport, impacting buses and taxis as well.
City buses, both ordinary and air-conditioned, will experience fare hikes, as will airport taxis, with the flag-down rate increasing to P115 for the first 500 meters. Even ride-hailing services aren’t exempt, with base fares rising by P20 for sedans and similar increases for other vehicle types.
The LTFRB attributes the need for these increases to the escalating cost of fuel, a situation exacerbated by global events. While the petition was initially filed in 2023, the recent geopolitical tensions have only intensified the pressure on transportation costs.
Economists warn that these fare increases could trigger a cascade effect, potentially fueling broader inflation. Higher transport costs often lead to demands for wage increases, which in turn can drive up the prices of goods and services, creating a challenging economic cycle.
However, some transport groups argue the approved increases aren’t enough. Leaders point to the recent, dramatic spikes in diesel prices – jumping as much as P23.90 per liter – as evidence that the adjustments fall short of addressing the true financial strain on operators.
Fuel prices are currently being monitored closely, with gasoline potentially reaching P91.60 per liter and diesel soaring to P114.90. Some bus operators are already considering filing for further fare increases if prices surpass the P100 per liter mark.
The LTFRB based its calculations on fuel prices ranging from P80 to P85 per liter, also factoring in a 14% increase in the cost of spare parts and vehicle maintenance. The agency maintains its decision balances the needs of the transport sector with the affordability for commuters.
Beyond buses and jeepneys, petitions for fare increases are also pending for taxis and motorcycle taxis, signaling that the impact of rising fuel costs will continue to be felt throughout the transportation landscape.
