DoTr orders fare matrix
The Department of Transportation (DOTr) will instruct the Land Transportation Franchising and Regulatory Board (LTFRB) to come up with a parametric formula so that fare adjustments will become automatic rather than dependent on petitions by transport groups or the riding public.
DoTr Secretary Arthur Tugade said fare increases should be based on a pre-determined matrix, wherein there will be clear cut guidelines when fares should be increased or lowered.
Tugade set as an example the matrix being used in the air transport sector, in which rate adjustments for fuel surcharges are based on the price of fuel per barrel and the consumer price index.
The transportation chief added that the matrix, not the petition, will be subject to discussions and deliberations.
“That matrix is not unilateral, that is the one subject to hearing,” he said.
Meanwhile, the DoTr will ask the LTFRB to review the recent fare increase for public utility jeepneys in the light of movements in world oil prices.
The latest fare adjustment pegs the minimum fare at P10 in the National Capital Region, Region 3, and Region 4.
“We will recommend for the LTFRB to review the fare increase. In the meantime, however, since there is already a decision, LTFRB can still implement the increase pending the review,” OIC-Undersecretary for Road Transport Mark De Leon said.
The LTFRB will implement the decision starting November 2 pending review.
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