Victory Liner and several provincial and city bus operators have appealed to President Ferdinand Marcos Jr. and government agencies to lift the suspension of approved fare increases as fuel prices continue to rise.
In an appeal circulated Tuesday, the bus operators urged Marcos, Congress, the Department of Transportation (DOTr), Department of Finance, Department of Energy, and the Land Transportation Franchising and Regulatory Board (LTFRB) to take action as they grapple with increasing fuel and operating costs while fares remain regulated.
The bus operators' appeal comes as fuel prices rose sharply again on Tuesday, with diesel increasing by P8.82 per liter, gasoline by P4.88, and kerosene by P6.47.
“We ask for a fare that will keep public transport moving. An urgent appeal from the provincial and city bus industry,” the groups said.
“We do not ask for ayuda,” they added.
The appeal was signed by Victory Liner, the Provincial Bus Operators Association of the Philippines, Nagkakaisang Samahan ng Nangangasiwa ng Panlalawigang Bus sa Pilipinas Inc., Southern Luzon Bus Operators Association, and Mega Manila Consortium.
The groups said fuel now accounts for around 45% to 60% of their operating costs, while the fares they are allowed to collect have not kept pace with the actual cost of providing public transportation.
They also cited the value-added tax (VAT) imposed on fuel, saying passenger fares are not subject to VAT. As a result, they said the VAT paid on fuel becomes part of their operating costs.
“No industry can survive when its regulated revenue is lower than the actual cost of delivering its service,” the groups said.
The operators said they are also dealing with expenses related to fleet modernization, loans, spare parts, tires, maintenance, insurance, toll fees, and regulatory compliance.
“We are not asking the Government for ayuda. We are not asking taxpayers to carry our businesses,“ the groups emphasized.
“We are asking for a fair and sustainable fare that reflects the real cost of operating public transportation,” they added.
The groups also warned that operators cannot freely increase fares, impose fuel surcharges, or compromise on vehicle safety and maintenance.
“This is not a threat to stop operations. This is a notice that operations may soon become impossible,” they said.
They warned that if bus operators are forced into insolvency, commuters could face fewer buses, reduced trips, longer waiting times, and disruptions in transportation between cities and provinces. Thousands of drivers, conductors, mechanics, and other support workers could also be affected.
The groups acknowledged that fare increases would affect commuters but argued that keeping fares below the actual cost of service could eventually affect the availability of safe and roadworthy buses.
The operators also pointed to their investments in fleet modernization, saying they borrowed money to comply with government requirements and continued operating because their franchises carry a public responsibility.
“Now, Government must fulfill its corresponding responsibility: to ensure that the public transport system it regulates remains financially capable of serving the Filipino people,” they said.
“We do not ask for charity. We ask for urgent action. We ask for a fair and sustainable fare,” it said.
The LTFRB approved fare adjustments for public utility vehicles in March amid rising fuel prices. However, Marcos ordered the suspension of the planned fare hikes on March 18, saying the government needed to protect commuters from additional costs amid the economic impact of the Middle East crisis.
The suspension remains in effect. Transportation Secretary Giovanni Lopez said in August that the fare increases approved in March were still suspended, although hearings on fare-hike petitions would continue.
“We do not ask for charity. We ask for urgent action. We ask for a fair and sustainable fare,” the groups said.
