The Land Transportation Franchising and Regulatory Board (LTFRB) has approved a 50-centavo jeepney fare cut amid plunging prices of fuel in the world market.
On Wednesday, the LTFRB announced the provisional fare reduction to be implemented within the week in the National Capital Region (NCR or Metro Manila), Region 3 (Aurora, Nueva Ecija, Tarlac, Zambales, Pampanga, Bulacan and Bataan) and Region 4 (Cavite, Laguna, Batangas, Rizal, Quezon).
The fare reduction will bring the minimum jeepney fare to P7 from P7.50.
The decision to slash jeepney fares came after the Alliance of Transport Organizations, Federation of Jeepney Operators and Drivers Association of the Philippines and Pasang Masda proposed to reduce jeepney fare rate.
The transport groups said a fare reduction is in order because of a series of oil price rollbacks in local and global markets.
On Wednesday, US benchmark West Texas Intermediate fell to fresh lows of below $28, days after Brent also slipped below that level.
In afternoon trade, WTI was down 3.3 percent at $27.52 and Brent was off 1.9 percent at $28.22.
Crude has lost three quarters of its value since mid-2014, hit by a perfect storm of a supply glut, weak demand, a slowing global economy and a strong dollar.
According to the Department of Energy’s (DOE) oil monitor on Monday, diesel prices are playing between P19.28 and P23.10 per liter.
It has a common price of P20.50 per liter.
Meanwhile, gasoline rates range from P33.30 to P40.65 per liter.
On Tuesday, oil companies again reduced pump prices because of plunging oil prices in the global market.
Oil firms slashed diesel prices by P1.50 per liter and gasoline prices by P1.10 per liter.
The cost of kerosene went down by P1.25 per liter.
LTFRB Chairman Winston Ginez said the jeepney fare reduction may take effect on Friday since the board is yet to formally approve the fare cut.
LTFRB board member Ariel Inton said the fare reduction was made possible because of a petition of various transport groups and commuters.
“What made us decide on the fare reduction? The clamor of the public to reduce fares and the unity among jeepney operators and associations encouraged us to implement the fare rollback, which would be implemented upon publication of the order,” Inton added.