The Land Transportation Franchising and Regulatory Board granted the provisional fare cut of 1 peso or a total of P7.50 for the first four kilometers from the current fare rate is 8.50 pesos. The LTFRB noted that with or without the fare matrix, the decrease shall apply, aside from the 20% discount for students, senior citizens and PWDs will still apply, which means 6 pesos for their base fare.
According to Atty. Winston Ginez, LTFRB Chairman, stated that the board members based their decision on the consistent diesel price decrease and the Metro Manila fare rates history.
According to the study conducted by the LTFRB, the average price diesel in Metro Manila is P33, during the year 2011, diesel was at 37.75 and minimum fare was pegged at 8 pesos.
Last June 2014, the board announced an increase in jeepney fares of 50 centavos for succeeding kilometers in jeepney fares for Metro Manila, regions 3 and 4 because diesel then was at 43.44.
LTFRB Chairman Ginez is also directing the regional directors to submit their recommendations within 45 days to localize implementation of fare decrease. Meanwhile, NEDA’s study on the impact of fare decrease to the economy was not yet submitted to the LTFRB.
