CEBU CITY—Cebu’s bus and mini-bus operators have agreed to reduce the minimum fare to P5 from the current P6 for the first 5 kilometers of a trip.
The rate for every succeeding kilometer would also be reduced from P1.20 to P1.
The presidents of Cebu Provincial Bus Operators Association, Cebu North Mini-Bus Operators Association, Cebu South Mini-Bus Operators Association and the Carmen Drivers and Operators Multi-Purpose Cooperative on Monday signed a memorandum of agreement (MOA) with the Cebu provincial government for the purpose.
Cebu Gov. Hilario Davide III signed the MOA on behalf of the province.
The Cebu Provincial Board last week granted Davide the authority to enter into an agreement with the bus operators.
“The implementation of a discounted fare rate would be a socially responsible act and financially beneficial to the riding public,” read a portion of the MOA.
In 2008, the Land Transportation Franchising and Regulatory Board (LTFRB) pegged the bus and mini-bus fares in Cebu at P8.50 for the first 5 kilometers and P1.40 for every the succeeding kilometer.
Julieto Flores, president of the Cebu South Mini-Bus Operators Association, said they opted to reduce the fare rates following the oil-price rollbacks since 2011.
He, however, said once the fuel price increases again, they would file another petition for reinstatement of the fare rates.
LTFRB 7 Director Reynaldo Elnar said the provisions in the MOA will be implemented once it gets approval from the LTFRB head office in Manila.