LTFRB service contracting program ends May 22

Commuters question the impact and say they barely felt fare relief.

After five weeks of operations, the service-based contracting program for public transport operators ends on May 22 at 11:59 PM, with commuters questioning its impact and saying they barely felt the promised fare relief.

The Land Transportation Franchising and Regulatory Board (LTFRB)’s Land-Based Service Contracting Program commenced on April 15 and was aimed at subsidizing costs for public utility vehicles (PUVs) amid volatile fuel prices. Authorities rolled out ₱7 billion for the program, mostly directed toward cash subsidies for drivers and operators.

The anatomy of a fleet feficit

Land-based PUVs, such as buses and jeeps, that participated in the program were required to provide a 20% fare discount on weekdays, on top of existing concessions for senior citizens, persons with disabilities, and students.

The program also required participating PUVs to provide QR code payment options. Participating units prominently displayed a tarpaulin banner stating participation in the service contracting program.

As the program ends on the national level, commuters claim that many PUVs did not implement the required 20% discount. Even on weekdays, some PUVs allegedly still charged regular fares and failed to provide QR codes for payment.

The fragmented exit strategy

The program was originally scheduled to end on May 21 but was extended to allow PUV operators to properly transition. The Department of Transportation encouraged local governments to continue the program within their localities.

Were you able to ride a PUV under this program, and how was the experience?

 

 

A ₱7 billion transport shield runs out of gas. The LTFRB service contracting program ends this May 22 amid widespread commuter frustration over missing 20% fare discounts and ghost QR codes.