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Monday, November 24, 2008

 

Transportation board 
assures another fare cut

LTFRB chief Thompson Lantion says rollback can be expected before Christmas

By James Konstantin Galvez, Reporter
 
The Land Transportation Franchising and Regulatory Board assured the public that they can expect another fare rollback before Christmas as oil prices continued to ease in international markets.

 In a statement over the weekend, Thompson Lantion, the chairman of the transportation board, said that as world crude prices continued plunging, the pressure will be great on local transport groups for a fare rollback.

According to him, the board expects jeepney operators and consumer groups to come to an agreement on December 3 when they tackle the petition for a fare rollback.

“If there is no opposition, we can get another rollback. Unfortunately, some bus operators are not so open to the idea,” Lantion said.

 He added that the jeepney operators have agreed to cut their minimum fare if diesel prices hit the P35 to P37a liter price range.

 In early November, the transportation board ordered a fare rollbacks to P8 from P8.50 for the first four kilometers for public utility jeepneys, to P9 from P10 for the first five kilometers for ordinary buses and to P11 from P12 for air-conditioned buses.

 The National Council for Commuters Protection Inc. has sought not only a reduction of jeepney and bus fares but also the abolition of the P10 compulsory tip imposed on taxi riders across the country.

The group based its petition on the dramatic plunge in world crude prices breaching the $50 a barrel in Asia on Friday, down from the July all-time high of $147 a barrel as plunging stock markets, driven down by more bad US economic news, battered investor confidence.

 The transportation board said that because of the falling world crude prices, diesel prices have gone down 13 times since July for a cumulative cut of P17.50 a liter and gasoline, 14 times for a cumulative cut of P16.50 a liter.

 Transport group Pasang Masda earlier said that it would file a petition to reduce the minimum fare once diesel prices go down to the P35 a liter level.

Pasang Masda chairman Obet Martin said an additional fare cut can be expected if diesel prices reach P30 a liter.

 The group will lead a protest action against major oil firms Shell, Petron and Caltex next week to pressure the Big 3 to implement a one-time hefty price cut.

 A taxi operators group opposes any plan me to do way with the P10 add-on fare on top of the regular fare imposed on taxi riders.

 Lawyer and Quezon City Councilor Jesus Suntay, also the president of Philippine National Taxi Operators Association, said scrapping the P10 added to the regular taxi fare is not timely because taxi operators and even taxi drivers have a hard time earning enough income.

 He added that as the president of the biggest group of taxi operators in the country with 12,000 members, he will appeal to the transportation board to reconsider the scrapping of the P10 add-on fare.

 Lantion had said that the transportation board is in favor of scrapping the add-on fare. He cited the prices of liquefied petroleum gas, or LPG, which have been going down. Many taxis are using LPG.

Lantion added that the add-on fare was only temporary and it could be scrapped by the agency when gasoline and LPG prices fall significantly.

 The add-on fare was imposed in July when the transportation board approved a 50-centavo increase in the minimum fare for jeepneys and P1 for buses.

   

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