Procedural History
- Notice of hearing issued on April 21, 2005; hearing conducted on May 17, 2005.
- Petitioners and Office of the Solicitor General (OSG) appeared and presented their positions.
- Both parties were given ten days to submit memoranda/position papers before case submission for resolution.
Petitioners’ Claims for Fare Increase
- Increase in operational costs including wage increases, ECOLA benefits, and government fees such as LTO registration fees.
- Other factors considered: peso devaluation and previous fare adjustments for other public utility vehicles.
Opposition Arguments by the Office of the Solicitor General
- Cited landmark case Kilusang Mayo Uno Labor Center vs Garcia questioning the sufficiency of evidence.
- Argued applicants failed to prove fare rate is fair, reasonable, non-confiscatory, and non-discriminatory.
- Questioned the authority of the PBOAP president to file the application without a board resolution.
- Proposed fare increase deemed burdensome; suggested moderate increase would suffice.
Basis for Fare Adjustment Approval
- Recent approval of fare adjustments for buses and jitneys in Metro Manila based on diesel fuel price increases.
- Diesel cost rose from P18.83 to P27.90 per liter, a 48% increase.
- Additional burden from government-mandated 20% discount for elderly, disabled, and students.
- Toll Regulatory Board increased toll charges by more than 200% on key expressways.
- Consideration of the impending implementation of the Expanded Value Added Tax (EVAT) law and oil industry projections.
Authorized Fare Structure and Percentage Increases
- Minimum fare (first 5 km): increased from P6.00 to P8.50 (42% increase).
- Succeeding kilometer fare: increased from P1.10 to P1.30 (19% increase).
Conditions on Implementation
- All affected bus operators deemed to have applied for the fare increase and required to pay filing fees per case and per unit.
- Operators must conspicuously post the approved fare matrix inside buses and terminals.
- Elderly and disabled riders are entitled to a 20% fare discount with valid ID, applicable year-round.
- Students are entitled to a 20% discount during the school year upon presentation of valid ID; not valid on weekends, holidays, or school breaks; graduate and similar students excluded.
- Children three feet and below ride free and should not sit on an adult companion’s lap for safety; operators to provide measuring devices.
- Non-compliance with posting fares or providing discounts results in fines and penalties.
- Overcharging or undercharging passengers subject to penalties under LTFRB and LTO rules.
Effectivity and Enforcement
- Decision effective 15 days after publication or upon filing copies with U.P. Law Center.
- Enforcement includes monitoring fare posting, discount application, and passenger charging practices.
Legal Authority
- Issued pursuant to Section 16(c) of the Public Service Act and Section 5(c) of Executive Order No. 202.
Summary of Administrative Findings
- The Board found the fare increase justified due to increased operational costs and supporting recent fuel price trends.
- The application complied with jurisdictional requirements despite OSG’s objections.
- The fare increase balances operational viability for operators with fair treatment of passengers while considering social discounts mandated by law and Board policy.