QuestionsQuestions (LTFRB MEMORANDUM CIRCULAR NO. 2005-022)
The legal basis is Executive Order No. 202 dated June 19, 1987, specifically Section 5, which empowers the LTFRB to determine, prescribe, approve, and periodically review fares and rates for public land transportation services. This authority was originally vested in the defunct Public Service Commission and affirmed by the Supreme Court in Kilusang Mayo Uno Labor Center vs. Hon. Garcia.
The Supreme Court declared that only the Public Service Commission (now LTFRB) has the authority to regulate fares of PUVs, and no other entity, including the operators themselves, can increase or change fares without LTFRB approval. Further delegation of this power is considered a negation of duty and a violation of trust.
Complaints and observations that air-conditioned PUB operators were implementing immediate fare increases without LTFRB approval, resulting in unfair fare rates, and the need to protect both the riding public and operators' investments prompted the issuance of this memorandum circular.
For the first five (5) kilometers, the fare is Php 10.00—a 25% difference above the Php 8.00 fare of non-airconditioned PUBs. The succeeding kilometers are charged at Php 1.75 per kilometer, which is the same as non-airconditioned PUB fares.
Operators must secure a fare matrix fee of Php 50 per unit and Php 40 for franchise verification record. They must post an original fare matrix visibly inside buses and terminals. Failure to comply may result in fines and penalties.
The elderly and disabled are entitled to a 20% discount on fares year-round upon presentation of valid ID. Students receive a 20% discount during the school year from Mondays to Fridays upon presentation of valid school-issued IDs. The discount does not apply during weekends, holidays, school breaks, or to graduate students.
Children three (3) feet and below ride free and are not allowed to sit on an adult's lap for safety reasons. Operators must provide a measuring device at the vehicle entrance to enforce this.
Any conductors or operators who fail to post the fare matrix or give the mandated discounts are subject to fines and penalties according to LTFRB and LTO rules. Overcharging or undercharging passengers is also penalized under Memorandum Circular No. 2005-020.
The regulation seeks to ensure adequate and sustained public transportation service at the least possible cost, while also protecting and conserving investments made by bus operators, ensuring fares are affordable yet viable for operators' continued operation.
It takes effect fifteen (15) days after publication in a newspaper of general circulation or upon filing three copies with the UP Law Center pursuant to Presidential Memorandum Circular No. 11 dated October 9, 1992.