QuestionsQuestions (LTFRB MEMORANDUM CIRCULAR NO. 2004-009)
It is based on Paragraph (c), Section 5 of Executive Order No. 202 (dated 19 June 1987), which grants the Board the power to determine, prescribe, approve, and periodically review and adjust reasonable fare rates and other related charges for public land transportation services.
It adjusted the minimum kilometer benchmark from five (5) kilometers to four (4) kilometers for jeepneys nationwide, such that the minimum fare of Php4.00 is now based on the first four kilometers.
The minimum fare is FOUR PESOS (Php4.00), and it is now based on the first FOUR KILOMETERS.
The previous minimum kilometer benchmark was five (5) kilometers.
It states that the Memorandum Circular modifies and/or supersedes any and all decisions and/or issuances inconsistent with it.
It takes effect immediately.
The circular is intended as the “implementation” of Paragraph (c), Section 5 of Executive Order No. 202, particularly the LTFRB’s function to periodically review and adjust reasonable fare rates.
It states that after consultation with the jeepney transport organizations and upon careful review of the existing fare rate structure, there is a need to adjust the benchmark.
Because it shows an administrative agency (LTFRB) exercising delegated statutory authority (EO No. 202) and issuing a policy/fee adjustment through a memorandum circular, including stated reasons, consultation, and immediate effect.
EO No. 202 provides LTFRB with power to determine, prescribe, approve, and periodically review and adjust reasonable fare rates; the circular is an exercise of that power to adjust the benchmark for reasonableness.
Maria Elena H. Bautista, Chairperson, and Felix S. Racadio, Board Member.
The circular states it applies “jeepneys nationwide.”
It implies that the starting price (Php4.00) corresponds to travel up to four kilometers; beyond that distance, the applicable fare rules would be based on the existing fare rate structure for additional kilometers.
It means that any previous LTFRB issuances or decisions that conflict with the new four-kilometer benchmark and Php4.00 minimum fare basis are legally displaced or altered to the extent of inconsistency.
You would compare the prior issuance’s fare benchmark and minimum fare basis; if it uses a five-kilometer benchmark for Php4.00 (or otherwise conflicts with the new four-kilometer basis), it would be considered inconsistent.