Negosyante News

November 22, 2024 5:01 pm

Modern Jeepney Fare Hike: A Reaction to Rising Operational Costs

The recent proposal for a ₱50 minimum fare for modern jeepneys in the Philippines, following the Public Utility Vehicle Modernization Program (PUVMP), has sparked concern among various stakeholders. PARA-Advocates for Inclusive Transport highlighted the significant financial burden of modernization on operators and drivers, encompassing not only the cost of new units but also garage, cooperative fees, and mechanic hiring. The current fares stand at ₱13 for traditional jeepneys and ₱15 for modern ones.

The group also raised concerns that big corporations might dominate the jeepney franchises, driven by profit motives. This scenario could potentially overshadow the interests of smaller operators and commuters. To address these challenges, several transportation groups urged President Ferdinand Marcos Jr. to pause the PUVMP while the Supreme Court decides on petitions challenging its implementation. These groups argue for a hold on the program, citing the potential loss of franchise and livelihood for drivers.

Lawyer Neri Colmenares suggested filing a motion for a status quo ante order against the modernization program. The PUVMP, initiated in 2017, aims to upgrade jeepneys with more environmentally friendly and roadworthy vehicles. However, the cost of each unit, over ₱2 million, is deemed too steep for many drivers and operators, even according to state-run banks like LandBank and Development Bank of the Philippines​​​​​​.

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