Bus groups appeal for lifting of fare hike suspension

BAGUIO CITY-- The provincial and city bus industries are appealing to President Ferdinand Marcos Jr., Congress, and key government transport agencies to immediately lift the directive suspending a fare adjustment order previously approved by the Land Transportation Franchising and Regulatory Board (LTFRB).

Saud suspension was implemented on March 14, 2026.

Industry representatives stated that bus operators are not seeking financial aid or government subsidies, but rather a fair fare structure that reflects the rising cost of providing public transportation.

Bus operators highlighted that fuel costs now make up roughly 45 to 60 % of their total operating expenses, which they can no longer absorb under current regulated fare caps.

Unlike airlines and sea transport operators, land public transport providers cannot independently impose fuel surcharges during periods of rising fuel prices. Operators also noted tax inequities, as passenger fares are exempt from value-added tax while the fuel they purchase includes VAT, leaving them unable to claim tax credits and forcing them to absorb the tax as a direct operational cost.

The appeal further outlined financial pressures stemming from fleet modernization requirements. Operators took out substantial loans to purchase new bus units to comply with government standards, while simultaneously facing expenses for spare parts, maintenance, insurance, toll fees, regulatory compliance, and upcoming wage increases. Bus leaders warned that maintaining artificially low fares risks pushing responsible operators into insolvency, which could ultimately lead to fewer operating buses, longer commuter wait times, and job losses for drivers, conductors, mechanics, and support staff.

The joint statement was signed in solidarity by major industry groups, including the Provincial Bus Operators Association of the Philippines, Nagkakaisang Samahan ng Nangangasiwa ng Panlalawigan Bus sa Pilipinas, Inc., Southern Luzon Bus Operators Association, and the Mega Manila Consortium. The groups clarified that the appeal is not a threat to halt services, but a notice that continuing operations may soon become impossible without government intervention on fare adjustments.

They said fuel accounts for around 45 to 60 percent of their total operating expenses, leaving operators with limited room to absorb further price increases under existing fare caps.

The groups also pointed out that, unlike airlines and sea transport operators, land-based public transport providers cannot independently impose fuel surcharges when petroleum prices rise.

Operators also cited tax concerns, saying passenger fares are exempt from value-added tax while the fuel they purchase is subject to VAT. As a result, they said they cannot claim input tax credits and must absorb the tax as part of their operating expenses.

The groups said fleet modernization has added to their financial burden, with operators taking out loans to acquire new buses to comply with government requirements.

They also have to shoulder the cost of spare parts, maintenance, insurance, toll fees and regulatory compliance, along with impending wage increases.

Bus operators warned that keeping fares below sustainable operating levels could eventually result in fewer buses on the road, longer waiting times for commuters and job losses among drivers, conductors, mechanics and other workers.

The joint appeal was backed by the Provincial Bus Operators Association of the Philippines, Nagkakaisang Samahan ng Nangangasiwa ng Panlalawigan Bus sa Pilipinas Inc., Southern Luzon Bus Operators Association and Mega Manila Consortium.

The groups clarified that they were not threatening to stop operations but warning that continued service could become increasingly difficult without government action on fares.