Victory Liner sounds alarm over ‘unsustainable’ bus fares

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 weighing on the bus industry.

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 (LTFRB) on 14 March 2026.

Victory Liner stressed that it is 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 (VAT), modernization expenses and an impending wage increase as among the pressures affecting its operations.

According to Victory Liner, fuel accounts for 45 to 60 percent of its operating costs, with expenses now outpacing 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 in response to fuel price movements.

Victory Liner said passenger fares are not VAT-exempt, while operators also shoulder VAT on fuel purchases as well as toll 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.

The bus operator clarified that its appeal was not a threat to halt operations but a warning about the sustainability of the industry if its concerns remain unresolved.

Victory Liner said it is seeking a fair and sustainable system that would allow operators to continue providing public transportation without compromising service quality, safety or their franchise obligations.