Consumer group says bus fare increase petition lacks merit

By KRIS BAYOS
February 11, 2011, 5:38pm

MANILA, Philippines – The National Council for Commuter Protection (NCCP) has asked the Land Transportation Franchising and Regulatory Board (LTFRB) to dismiss the petition of metro bus operators to raise their fares.

In a 10-page motion to dismiss, the NCCP said the petition of the Intercity Bus Operators Association (InterBOA) should be dismissed outright because it lacks financial statements, projections or studies showing possible losses and possible margin of profit on the part of the operator-petitioner.

"In the absence of said documents, the Honorable Board cannot act on the petition for its technical staff would have no basis for evaluation to determine whether there is warrant to the request for rate revision," the petition said.

InterBOA is asking government permission to increase ordinary city bus fares from P9 to P14 for the first five kilometers and from P1.85 to P2.55 per succeeding kilometer.

It also wants to raise fares for air-conditioned city buses from P11 to P17 for the first five kilometers and from P2.20 to P2.90 per succeeding kilometer.

"It is further submitted that the said documents must be attached to the petition and cannot be belatedly submitted in order to cure what is otherwise a fatal defect that warrants the outright dismissal of the petition," NCCP said.

The NCCP filed its motion way after the LTFRB gave the InterBOA 10 days to submit the documentary evidence to back up its petition and another 10 days to submit its final position papers.

"Only after then can we resolve the petition at hand,” LTFRB Board Member Manuel Iway said.

Iway said the LTFRB could decide on the fare hike petition within the month or early March.

“But so far, we find their fare hike petition as too exorbitant, especially the InterBOA. Based on historical figures, ordinary city bus fare was pegged at P9 when a liter of diesel costs P42.05 in May 2008. Currently, diesel is at P41 a liter,” he said.

Aside from petitioning for a fare increase, InterBOA also wants to provisionally hike ordinary city bus fares from P9 to P11.50 and from P1.85 to P2.35 per succeeding kilometer, and air-conditioned city bus fares from P11 to P15 and from P2.20 to P2.70 per succeeding kilometer.

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