Policy Background and Regulatory Framework
- DOTC Department Order No. 2002-77 aimed to regulate fares to prevent unfair competition between regular and air-conditioned buses.
- Air-conditioned bus fares must have at least a 20% premium over regular bus fares.
- DOTC Department Order No. 2005-010 empowered the LTFRB to amend or modify previous orders governing its regulatory functions.
- LTFRB Memorandum Circular No. 2005-020 warned air-conditioned bus operators against unauthorized fare changes.
Findings and Considerations of LTFRB
- Complaints revealed that air-conditioned PUB fares for the first five kilometers were 38% higher than non-aircon fares after recent fare increases.
- The Board seeks to protect operators' investments while prioritizing public convenience.
- The fundamental purpose of fare regulation is to ensure adequate, sustained service at the lowest possible cost.
- Fare determination balances market forces, operator viability, and affordability for passengers.
Fare Regulation for Metro Manila Air-Conditioned PUBs
- Base Fare: PHP 10.00 for the first five kilometers (25% higher than PHP 8.00 for non-aircon buses).
- Succeeding Kilometers: PHP 1.75 per kilometer, same as non-aircon buses.
Conditions for Fare Implementation
- Operators must secure a Fare Matrix, costing PHP 50.00 per unit, and PHP 40.00 for Franchise Verification.
- The Fare Matrix must specify the unit’s plate number and kilometer landmarks.
- Operators must post the original fare matrix conspicuously inside buses and terminals.
- Elderly and disabled passengers receive 20% fare discounts upon ID presentation, all year round.
- Students receive 20% fare discounts on school days (Mondays to Fridays) during the school year only; graduate students are excluded.
- Children three feet and below ride free but must not sit on an adult's lap; operators must provide measuring devices at vehicle entrances.
Penalties and Enforcement
- Failure to post fare matrices or provide mandated discounts results in fines and penalties under LTFRB and Land Transportation Office (LTO) rules.
- Overcharging or undercharging passengers incurs penalties per Memorandum Circular No. 2005-020.
Effectivity and Supersession
- This memorandum circular supersedes inconsistent issuances.
- It takes effect 15 days after publication in a newspaper of general circulation or filing with the UP Law Center.
Legal and Regulatory Principles
- The LTFRB exercises exclusive regulatory authority over public land transportation fares in Metro Manila.
- Fare regulations aim to harmonize the interests of operators and the commuting public while ensuring orderly and reliable transportation services.
- The Board's regulatory actions are consistent with Supreme Court rulings and executive directives to maintain public order and confidence in public transportation.