When a public utility vehicle (PUV) operator files petitions to the Land Transportation and Franchising Regulatory Board (LTFRB) to increase the existing fare rates due to significant movement of fuel prices, the application is known as petition for fare adjustment. It involves making a request to recalculate fare rates primarily based on fuel costs and total operating and maintenance expenses, utilizing modernized PUVs as the standard. Addressing such requests is one of the numerous mandates of the Board, hence the application directed to them.
Petitioning for fare adjustment involves presenting compelling evidence and data supporting the need for adjustment and engaging with the regulatory authority to propose changes in transportation fare rates, with the aim of ensuring fair and reasonable pricing for both operators and commuters. It also involves further inquiries, consultations, or assessments to ensure that any proposed changes align with the principles of fairness, affordability, and sustainability within the public transportation sector. It can be approved or rejected, but only with an approval will the operator be able to enforce the revised fare rates according to the determined formula and guidelines issued by the LTFRB.
What is Fare Adjustment
Fare adjustment refers to the process of modifying or recalibrating the fare rates charged for public transportation services such as buses, jeepneys, and taxis. This adjustment is typically prompted by changes in factors such as operating costs, fuel prices, regulatory requirements, or economic conditions, particularly the inflation, fuel price fluctuations, and changes in operating expenses. With fare adjustment, the Board ensures that the fares charged remain fair and reasonable for both passengers and service providers.
Fare adjustments can involve increases, decreases, or modifications to existing fare structures, and they are often subject to approval or oversight by regulatory bodies such as transportation authorities or agencies. The LTFRB oversees and regulates the fare adjustment process to ensure that any modifications to fare rates are fair, reasonable, and considerate of both commuters’ affordability and operators’ sustainability. The goal is to strike a balance between meeting the financial needs of transportation operators and maintaining affordable transportation options for the public.
Factors Considered in the Fare Adjustment
Some of the factors considered in the fare formula for adjustment include:
- Fuel prices sourced from the Department of Energy’s (DOE) official reports.
- Total operating and maintenance costs determined through surveys, studies, and investigations
- The existing base fare, which serves as the starting point for adjustments as set by the Department of Transportation (DOTr) and LTFRB.
Petition for Fare Adjustment in LTFRB
Petitioning for fare adjustment in the LTFRB means formally requesting a review and potential change in public transportation fare rates. This process typically occurs when operators believe that adjustments are necessary due to significant changes in factors such as fuel prices, operating costs, or other relevant economic considerations.
The operators or stakeholders must provide supporting data and documentation to justify their request for fare adjustment. The LTFRB evaluates these petitions, considering factors like fuel prices, operating expenses, and the impact on commuters, before making a decision on whether to approve or deny the requested fare adjustment.
Who Can Avail
Petitions for fare adjustment can be applied for by the following:
- Any operator who are holders of valid Certificate of Public Convenience (CPC) and who intends to increase existing fare rates
Requirements for Filing Petition for Fare Adjustment
To initiate the process of seeking authorization to change/adjust the fares of a PUV unit, CPC holders and PUV operators are required to prepare and attach the following documents:
- Four (4) original copies of the Petition for Fare Adjustment
- One (1) Original copy for presentation and one (1) Photocopy of any valid government-issued ID Card
- One (1) Original copy for presentation and one (1) photocopy of Publication of Notice of Hearing
- Blue Green Folder
For Authorized Representatives (Individual Operators)
Personal appearance of the petitioner is required. However, if not possible for petitioner to be physically present, authorized representative is allowed upon presentation of:
- One (1) Original copy for presentation and one (1) Photocopy of Duly notarized Special Power of Attorney (SPA)
- One (1) Original copy for presentation and one (1) Photocopy of Valid Government-Issued ID of the applicant and authorized representative
For Cooperatives
- One (1) Original copy for presentation and one (1) Photocopy of Board Resolution/ Secretary’s Certificate authorizing the filing of Petition for Fare Adjustment and delegating the authorized representative/s to file Petition
- One (1) Original copy for presentation and one (1) Photocopy of valid government-issued ID of the authorized representative
For Corporations and Partnerships
- One (1) Original copy for presentation and one (1) Photocopy of Board Resolution/ Secretary’s Certificate authorizing the filing of Petition for Fare Adjustment and delegating the authorized representative/s to file Petition
- One (1) Original copy for presentation and one (1) Photocopy of valid government-issued ID of the authorized representative
Procedures for Filing Petition for Fare Adjustment
To file a petition for fare adjustment from the LTFRB due to significant fuel price movements as well as other factors, follow these steps:
Step 1. Initiate the Process by Visiting the LTFRB Office
Start by visiting the nearest LTFRB office to obtain the Petition for Fare Adjustment Form and the accompanying checklist of requirements.
Step 2. Submission of Application
Submit the petition along with all required documents to the Financial Analyst of the Technical Division for a thorough verification and completeness assessment.
Step 3. Assessment of Fees and Payment
Await the completion of fee assessment and issuance of the payment order slip (POS) for the filing fees. Proceed to make the necessary payments at the designated cashier window.
Step 4. Submission and Evaluation
Deliver the completed request form along with the official receipt of payment to the Legal Division FrontLine.
Step 5. Wait for the Notice of Hearing
Allow the LTFRB personnel sufficient time to prepare the notice of Hearing and have it scheduled with the Legal Department. Wait until you receive the notice on your email.
Step 6. Attend the Scheduled Hearing
Attend the scheduled hearing and wait for resolution in the Formal Offer of Evidence (FOE).
Step 7. Wait for the Resolution
Wait for the resolution to be encoded in the Franchise Processing System (FPS) and forwarded to the Information Systems Management Division (ISMD).
Step 8. Claim the Petition Order of Fare Adjustment
Upon receiving approval, visit the LTFRB office on the designated date to claim the Board’s order pertaining to your request for Fare Adjustment at the ISMD Releasing Unit, located on the 2nd Floor.
By adhering to the outlined procedures and fulfilling the necessary requirements, all CPC holders can efficiently seek authorization to adjust /increase fare rates at the LTFRB.
Fees
The request to adjust /increase fare rates is not free. When you file a petition for this procedure, you need to be ready to pay the following fees:
- Filing Fee: PHP 510.00
- Legal Research Fee: PHP 10.00
How Long Does it Take to Process a Petition for Fare Adjustment
The processing time is estimated to be at least sixty-five (65) days and three (3) hours, though it may vary depending on the completeness of the requirements submitted. Having incomplete requirements may also cause delays in approval of your request for fare adjustment.
Video: LTFRB Urges Operators and Transport Groups to File A Petition for Fare Increase
Understanding the procedures and formally filing a petition for fare adjustment is the perfect response for operators and transport groups when the Board calls them out for rallying to get the LTFRB to approve a fare hike. This is exactly how it happened in this news clip from PTV Philippines:
Summary
Filing a petition for fare adjustment with the LTFRB involves presenting evidence and data to support the need for changes in transportation fare rates due to factors like fuel prices or operating costs. The LTFRB conducts a comprehensive review, considering various factors, to decide whether to approve or deny the petition, aiming to ensure fair and reasonable pricing for both operators and commuters.