Instead of allowing an increase in fares, the Land Transportation Franchising and Regulatory Board (LTFRB) is looking at a possible second phase of its cash and fuel subsidy programs for public utility vehicle (PUV) operators as fuel prices have risen in the last seven months.
This was after the Department of Transportation (DOTr), LTFRB’s mother agency, on Tuesday said it is not inclined to approve any jeepney fare hike amid the impact of COVID-19 pandemic on commuters.
LTFRB executive director Joel Bolano said on Wednesday they are coordinating with the Department of Energy for a possible Phase II of their fuel and cash subsidy for PUV operators.
“We are preparing the proposal to include how much will be given and who are the beneficiaries for the possible Phase II of the fuel and cash subsidy for the PUV operators,” he added during the briefing of the House committee on transportation.
The public utility transport group Pasang Masda called for an increase in minimum fares by P3, which will set it at P12 from the current P9 amid the series of increases in the prices of fuel.
But Transportation Secretary Arthur Tugade said in a virtual briefing he does not want any fare increases, saying it would affect more people.
“It has been my position and continues to be my position,” he added.
Oil firms recently announced a big-time hike in pump prices of petroleum products, marking the seventh straight month of increases.
Data from the DOE indicated the year-to-date adjustments stand at a total net increase of P16.55 per liter for gasoline, P15.00 per liter for diesel, and P12.74 per kerosene as of October 5.
LTFRB chairman Martin Delgra appealed for continued funding for the agency’s service contracting program to address the issue of viability amid these difficult times.
“This would actually be an equalizer to both the transport sector, on one hand, and the commuting public on the other… and this is also where (the) government takes a direct hand in addressing this issue,” Delgra said.
Under the program, PUV operators and drivers who participated in the government’s free ridership program, will receive a one-time payout of P4,000 and weekly payments based on the number of kilometers traveled per week, whether they have passengers or not.
To help the jeepney drivers and operators, the DOTr is implementing the service contracting program, which allows participating PUV drivers to receive an onboarding incentive and a per kilometer fee to ferry medical frontliners, authorized persons outside of residence (APORs), and essential employees.
For those joining the Free Ride initiative under the Service Contracting Program, the DOTr and Land Transportation Franchising and Regulatory Board (LTFRB) increased the payouts from P46.80 to P82.50 per kilometer for buses, and P52.50 for jeepneys.
PUV drivers also stand to receive an additional P7,000 if they log-in via the LTFRB’s Driver mobile application for five days a week.
DOTr also entered into an agreement with the Department of Labor and Employment (DOLE) to help drivers and operators that were affected by the Public Vehicle Modernization Program.
Under the “enTSUPERneur,” the government will give financial assistance to PUV drivers and operators an opportunity to start their own business.
Part of the program includes entrepreneurial-related training, businesses management orientation, microinsurance, among others.
The DOTr expects 3,633 beneficiaries from this program with a total budget of P591 million. With Darwin Amojelar