Commuters must brace for a “drastic reduction” of public utility vehicles as well as a surge in the minimum fare to as high as P50 in the next five years from the current P13 with the government’s PUV Modernization Program.
“Even if you tap a local manufacturer, the cheapest modern unit could cost about P900,000 to P1 million,” said Julius Dulay, chairperson of the group Commuters of the Philippines.
“The expenses would be passed on to the commuters. We have to bear the brunt of it,” he added.
Sonny Africa, IBON Foundation executive director, earlier projected a massive fare hike in the coming years, citing the country’s experience following the privatization of water and power services.
“Fares will be kept low at maybe P15 to P20 or even P25 for the first three to five years. But we fully expect that in five years or more, it will hit about P45 to P50,” he told ANC’s Headstart program.
“Our basic computation there was that if it’s corporatized, you not only have pressure to repay the loans for the higher expense jeeps, but it is also the increased profit motive, premium being added to the fares on top of that,” Africa added.
Dulay said their group shared the same concern.
“We do not only see fare increases but that there would also be a drastic reduction in the number of PUVs. The number of PUVS could not be able to meet passenger demand,” Dulay said.
Senate Minority Leader Aquilino Pimentel III, for his part, urged IBON Foundation to share its study that was the basis of its fare hike forecast.
“Definitely, this (PUV Modernization Program) has an effect on transport fares because the expenses to maintain the new system being proposed would be greater,” the senator said.
“It’s an immediate expense. There will be debt,” he added.
The Akbayan party-list, for its part, called for another extension of the Jan. 31 deadline for the consolidation of PUV franchises into a cooperative or corporation, noting that only 40 percent of the traditional jeepneys in Metro Manila have complied.
Rafaela David, the group’s president, cited the need for a careful and fair approach to modernization.
“Modernity must not create more inequalities. We urge the government to further enhance government subsidies to ease the financial burden on operators and owners upgrading to modern jeepneys. While recognizing the benefits of modernization, rushing the phase-out of traditional PUVs risks disproportionately affecting vulnerable communities,” she said.
The current government subsidy for operators who would upgrade to more modern units stands at P180,000, way below the low estimate of at least P900,000 per unit.