Transport group sounds alarm on geopolitical impact

The United Transport Cooperative of the Philippines (UTCP) has issued a strong statement expressing deep concern over the severe impact of ongoing global geopolitical conflicts on the nation's transport sector.

In a statement, the organization highlighted how escalating international tensions are directly contributing to rising crude oil and fuel prices, subsequently crippling local drivers and operators.

In a direct appeal to the Department of Transportation (DoTr), the Land Transportation Franchising and Regulatory Board (LTFRB), commuters and all Filipinos, the UTCP underscored the economic hardship faced by its members.

"Many of our drivers and operators now face economic hardship as rising operational costs are met with limited government support and stagnant fare rates," the statement read.

A central point of contention for the UTCP is the outdated fare matrix, which they assert no longer reflects current economic realities.

Despite a consistent surge in fuel and maintenance costs over the past six years, fare rates for Transport Network Vehicle Services (TNVS) remain unchanged, stuck at levels set by Memorandum Circular No. 2019-036.

This stagnation has led to significant financial suffering for TNVS drivers and operators, with many struggling to even break even.

The UTCP reports that this unsustainable situation is causing a concerning number of drivers to abandon various Transport Network Company (TNC) booking platforms, leading to a decrease in the overall supply of available vehicles with no immediate plans for new slots.

The UTCP also pointed out a critical flaw in the current fare matrix system: its failure to account for operational losses incurred on trips shorter than three kilometers. The absence of a fixed minimum fare for these short journeys frequently results in drivers canceling trips, inconveniencing passengers and negatively impacting the quality of service.

The cooperative stressed that this situation is "unsustainable and threatens the stability of our transport services nationwide."

In light of these pressing challenges, the UTCP is making an urgent appeal for government intervention. They are advocating for an immediate increase in the base fare for ride-hailing services to offset the steady rise in fuel prices over recent years.

Additionally, the UTCP urges the LTFRB to reassess the supply of active TNVS units and to update the current fare matrix in close consultation with transport groups, basing adjustments on actual economic data.

The UTCP also called upon the public for understanding and support during these difficult times.

"The impact of war and economic instability affects all of us, but it is only through unity, cooperation, and decisive leadership that we can weather this storm together," the statement stated, expressing hope for a stronger and more sustainable transport system for the Philippines.