Title
LTFRB Rules on Public Utility Jeepney Operations
Law
Ltfrb Memorandum Circular No. 98-011
Decision Date
Mar 12, 1998
The LTFRB establishes guidelines for the operation and franchising of Public Utility Jeepneys, detailing vehicle specifications, route classifications, and fare structures while imposing a moratorium on new franchise applications.

Legal basis and controlling DOTC classification

  • Item No. 2 of DOTC Department Order No. 97-1097 provides the standard classification for all public land-based transport conveyances.
  • Under that DOTC classification basis, LTFRB applications for a franchise to operate “Public Utility Jeepney” may propose specific vehicle and service features.

Policy objective and franchise application guidance

  • The circular sets the allowable vehicle features, route concepts, fare basis, and operating conditions for Public Utility Jeepney franchises.
  • The circular provides operational standards that franchise proposals may follow when using the “Public Utility Jeepney” classification.
  • The circular regulates acceptance of franchise applications during an existing moratorium through a petition rule.

Defined public utility jeepney features

  • Applications proposing “Public Utility Jeepney” operations must align with the vehicle features below.
  • The proposed unit must have a seating capacity of 12–32, excluding the driver.
  • The proposed unit must meet a gross vehicle weight of 2,500 kgs. and above and/or 70 kg/pax.
  • The vehicle body make must be jitney type/AUV.
  • Routes must be fixed (regular, limited stop or express) or variable within a specified area as authorized.

Route, ventilation, and fare basis

  • Routes are fixed as regular, limited stop, or express, or are variable within a specified authorized area.
  • Ventilation may be either ordinary or air-conditioned.
  • Fare must be based on distance or zonal fare as authorized by the LTFRB.

Operating conditions and geographic limits

  • Public Utility Jeepney operations may carry passengers, freight, or both for provincial operations.
  • Operation is discouraged along major materials in urban areas.
  • Ceiling distance is imposed unless authorized otherwise, with:
    • 15 kms. for urban routes, and
    • 30 kms. for inter-urban/provincial routes.

Moratorium on new franchise applications

  • The circular applies “in the meantime and until further notice” due to the existing moratorium on acceptance of new applications for franchises to operate public utility vehicles.
  • During the moratorium, only petitions are accepted for consideration.
  • Accepted petitions must not involve or result to additional units.

Modification, supersession, and revocation

  • The circular modifies the applicable rules governing Public Utility Jeepney operations accordingly.
  • Any issuances or parts inconsistent with the circular are modified, and superseded/revoked to the extent of inconsistency.
  • All inconsistent provisions are displaced by the operating standards and petition acceptance rule in this circular.

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