Question & AnswerQ&A (LTFRB)
The primary subject matter is the application for authority to adjust passenger fare rates for provincial non-air-conditioned (regular) buses filed by the Provincial Bus Operators Association of the Philippines (PBOAP).
The authorized fare changes included an increase in the minimum fare (first 5 kilometers) from P6.00 to P8.50 or 42%, and the succeeding kilometer rate from P1.10 to P1.30 or 19%.
Conditions include paying the corresponding filing fees for the fare increase, posting the fare matrix conspicuously inside buses and terminals, giving mandatory 20% fare discounts to the elderly, disabled, and students (with specific limitations), providing free rides to children three feet and below, and compliance with penalties for overcharging or failure to give discounts.
The elderly and disabled are entitled to a 20% discount on regular fares year-round upon presenting valid IDs. Students get a 20% discount during the school year from Mondays to Fridays but not on weekends, holidays, or breaks, and graduate school students are excluded.
Failure to comply with posting the fare matrix or giving discounts is subject to corresponding fines and penalties according to existing LTFRB and LTO rules and regulations.
The justification is based on significant increases in operational costs including a 48% rise in diesel prices from P18.83 to P27.90 per liter, wage increases, ECOLA grants, increased government fees including tolls, and the impact of the Expanded Value Added Tax (EVAT) law effective July 1, 2005.
The LTFRB issued a notice of hearing, conducted a hearing with the presence of counsels for the applicants and the Office of the Solicitor General, allowed both parties to file memoranda or position papers, and considered evidence and submissions before rendering the decision.
The decision mandates a 20% fare discount for the elderly, disabled, and students with specific conditions to ensure affordability and includes provisions for free rides for children below three feet tall with safety measures to prevent sitting on laps.