Amid high fuel prices, bus company warns fares too low

Victory Liner Inc. has called on the government to address what it described as an unsustainable fare system amid rising fuel prices and other operating costs.

In a statement, the bus company urged the immediate lifting of the suspension of a fare adjustment approved by the Land Transportation Franchising and Regulatory Board on 14 March 2026.

Victory Liner said it was not seeking government financial assistance but a fare structure that would allow bus operators to sustain their services.

The company cited rising fuel prices, the prohibition on fuel surcharges, value-added tax, fleet modernization costs and an impending wage increase as pressures on its operations.

According to Victory Liner, fuel accounts for 45 to 60 percent of its operating costs, with expenses now exceeding revenue under the existing fare structure.

The company also questioned why bus operators are prohibited from imposing fuel surcharges while airlines and sea transport operators have mechanisms to adjust charges based on fuel price movements.

Victory Liner said passenger fares are not VAT-exempt, while operators also pay VAT on fuel purchases, tolls and maintenance expenses.

It added that compliance with the government’s public transport modernization program required substantial borrowing to upgrade its fleet, further increasing its financial obligations.

The company said it intends to comply with wage regulations and provide employees with proper compensation but warned that higher labor costs would add pressure under the current fare structure.

“No industry can survive when its regulated revenue is lower than the actual cost of delivering its service,” Victory Liner said.