City jeeps eye fare hikes, fewer trips, cost cuts

By Rjay Zuriaga Castor

The Western Visayas Transport Cooperative is considering a reduced deployment of jeepney units, a provisional fare increase, and even shutting down air conditioning in modernized units as rising fuel prices threaten to cripple public transport operations in Iloilo City.

WVTC President Raymundo Parcon said the cooperative may reduce the number of operating units, including a 50 or 30 percent deployment scheme, if diesel prices continue to rise while fares remain unchanged.

“If diesel continues to increase and the fare remains the same, there is a tendency that we will gradually reduce the deployment of our units,” Parcon told the Daily Guardian.

Under the proposed setup, terminals such as Mohon that normally deploy about 30 units may operate only 15 units at a time to reduce fuel consumption.

Parcon said running all units is becoming financially unsustainable, noting that each unit needs about PHP 2,500 worth of diesel daily to operate.

“If diesel reaches around PHP 90 per liter, operators will already be running at a loss,” he added.

Diesel pump prices currently range from PHP 78 to PHP 84.75 per liter, according to data from the Department of Energy.

The sharp increases in domestic fuel prices have been driven by escalating tensions in the Middle East, particularly military standoffs between the United States and Iran, which have disrupted shipping through the Strait of Hormuz and pushed global crude oil prices above USD 100 per barrel earlier this month.

Parcon clarified that even before the ongoing U.S.-Israel-Iran conflict, the cooperative sometimes already implements 50-50 deployment on weekends, while 100 percent of units operate on weekdays.

He noted that the plan has not yet been finalized and may be scrapped if fuel prices stabilize.

Parcon acknowledged that fewer units on the road could affect commuters but said the cooperative will study passenger volume before implementing any changes.

“We will study it. We are not going to implement it abruptly if we do not know the situation of our units and the volume of the passengers,” he said.

WVTC currently operates 95 modernized jeepneys, with 30 units each assigned to Tagbak and Mohon terminals, 20 units on the Jaro-CPU route, and 15 units along the Ungka-Diversion Road route.

The cooperative also has more than 1,700 traditional jeepneys operating under its network.

Modernized jeepneys are air-conditioned, Euro 4-compliant public utility vehicles introduced under the national government’s Public Utility Vehicle Modernization Program, which aims to replace aging traditional jeepneys with safer, more fuel-efficient, and environmentally compliant units.

Aside from reduced deployment, WVTC has also requested the Land Transportation Franchising and Regulatory Board to grant provisional authority for a fare increase.

The cooperative proposed a PHP 3 fare hike for modernized units, which currently charge PHP 15 for the first four kilometers.

For traditional jeepney units, the proposal is a PHP 2 increase from the current PHP 13 minimum fare.

“But that is not yet enough. If diesel reaches PHP 100/L, even a fare of P18 for modernized units will not be enough. It may need to increase by P5,” he said.

The LTFRB has not yet granted provisional authority for a fare increase.

LTFRB Chairman Vigor Mendoza has called it a “last resort” after fuel subsidies and service contracting.

WVTC is also studying the possibility of temporarily turning off air conditioning in modernized jeepneys to reduce fuel consumption, instead allowing passengers to open windows for ventilation.

Parcon said the measure will be discussed with LTFRB Region 6, noting that it would be the first time such a step is considered.