Title
LTFRB Fare Increase for Provincial Aircon Buses 2005
Law
Ltfrb Fare Adjustment Of Provincial Aircon Buses
Decision Date
Feb 16, 2005
The LTFRB authorizes a fare increase for provincial air-conditioned buses, establishing new rates ranging from P1.35 to P2.00 per kilometer, in response to rising operational costs and global fuel price hikes.
A

Questions (LTFRB FARE ADJUSTMENT OF PROVINCIAL AIRCON BUSES)

It was an LTFRB decision on applications for authority to adjust/increase passenger fares of provincial air-conditioned buses, including the approval of a categorized fare structure per km.

The Provincial Bus Operators Association of the Philippines (PBOAP) and the Southern Luzon Bus Operators Association (SOLUBOA).

Regular Air-Con: P1.35/km; De Luxe Air-Con: P1.45/km; Super Deluxe Air-Con: P1.55/km; Luxury Air-Con: P2.00/km.

The across-the-board rate of P1.10/km.

Section 16(c) of the Public Service Act and Section 5(c) of Executive Order No. 202.

The Board took judicial notice of successive increases in oil products, toll rates, spare parts, operational expenses, wage/ECOLA, depreciation, peso devaluation, and increased government fees, and concluded it was compelled to grant the fare adjustments.

The hearing was initially set, but due to lack of material time it was reset. The direct testimony of a witness was continued and subjected to initial cross-examination, then further cross-examination was scheduled and later terminated, after which the case was deemed submitted for resolution after position papers.

The Board reset the hearing date to June 22, 2004 because there was lack of proof of service to the OSG.

SOLUBOA requested to present the jurisdictional facts, and the Board granted it. SOLUBOA also requested to adopt the evidence previously presented by PBOAP, and the Board granted the adoption and submitted the case for resolution.

Operators deemed to have applied for a fare increase were required to pay LTFRB filing fees of P520.00 per case number (including one original copy of a certification) plus P50.00 per authorized unit; submission requirements included a list of buses with plate numbers per class/category.

Operators must post in conspicuous places inside buses and in terminals/stations the certification of approved fare rates to inform the public and avoid disputes.

Elderly, disabled, and students were entitled to a 20% discount on regular fares upon presentation of their duly issued identification cards.

Children three (3) feet and below are free of charge when riding provincial air-conditioned service with an adult companion, and operators cannot force/coerce the child to sit on the adult’s lap for safety; operators must provide a measuring device at the vehicle entrance as a guide.

Failure to post the certification is penalized with P2,500.00. Failure to give discounts triggers fines/penalties under LTFRB Memorandum Circular 2003-033: first offense P3,000; second offense P5,000; third offense suspension of CPC for 60 days; fourth offense cancellation of CPC.

Overchanging/undercharging is penalized in accordance with existing laws, rules, regulations, and LTFRB circulars on the matter.

They must be credited by operators/conductors in their next purchase of air-conditioned bus tickets upon presentation of the actual tickets showing unauthorized increase; credit applies to tickets issued from May 27, 2004 onwards up to the last day before effectivity, with required credit procedures and a P5,000.00 penalty for failure to credit.

Fifteen (15) days following its publication in a newspaper of general circulation or the filing of three (3) copies with the U.P. Law Center, pursuant to Presidential Memorandum Circular No. 11 dated October 9, 1992.

It indicates that the LTFRB relied on previously established factual/legal justifications (such as operational cost increases and “justice now demands” rationale) and applied them to similar fare adjustment applications, showing how administrative tribunals may reuse common grounds across related cases.


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