LTFRB Releases Base Fare Adjustment Matrix for PUV Operators
Good news to all jeepney, bus, taxi, and UV operators: The Land Transportation Franchising and Regulatory Board (LTFRB) has now set a “fare formula” to help remove the need of to adjust fare prices during fuel pump price changes.
“This is the fare matrix formula the (LTFRB) Board will adopt whenever there are fuel price adjustments, principally,” LTFRB Chairman Martin Delgra said in a mobile phone message. “The principle behind [the circular] being that when the fuel adjustment–downward or upward–reaches a threshold, a change in fare will take place.”
Memorandum Circular No. 2019-035
The LTFRB published the Memorandum Circular No. 2019-035 last Sunday in a newspaper, and in it, gave an outline of base fare adjustments that not only takes into account the fuel pump price data from the Department of Energy, but also includes transport operator costs such as fuel expenses.
The memorandum stated that public transport operators should use this fixed fare matrix to guide them when they are automatically adjusting their fare. According to Business World, LTFRB’s goal is to remove “the need for public hearings” that often get delayed. Often, price conditions have already changed, resulting in inefficient time and wasted effort.