BAGUIO CITY — The Department of Transportation in the Cordillera said any proposed “Special Fare Rate” for public utility vehicles must undergo prior consultation at the barangay level before approval.

DOTr-Cordillera Regional Director Ret. BGen. Glen Dumlao said the special fare scheme is not automatic and must follow a bottom-up process led by barangay local government units.

Barangays are required to conduct consultations with residents and transport stakeholders and submit a formal recommendation before the DOTr or the Land Transportation Franchising and Regulatory Board considers the request.

Dumlao said the special rate aims to balance the needs of commuters and transport workers, particularly in areas with unique operational challenges.

He said fare computation will be based on fuel consumption for one-way trips in difficult terrain, driver compensation to ensure a living wage, and operators’ boundary requirements.

The proposal comes after the national government deferred scheduled fare hikes, leaving room for localized adjustments in areas where standard fares may not be viable.

Dumlao noted that routes in steep and far-flung barangays in Baguio face higher operating costs that are not reflected in regular fare structures.

Despite the proposed adjustments, he stressed that discounts for vulnerable sectors remain mandatory.

Senior citizens, persons with disabilities, and students are still entitled to the 20 percent fare discount under existing laws, regardless of any approved special rate.