Victory Liner, bus groups call for fare hike to sustain public transport operations

Victory Liner, Inc., alongside bus groups called upon government offices to immediately lift the directive suspending a fare adjustment order previously approved by the Land Transportation Franchising and Regulatory Board (LTFRB).

In a statement released on September 22, the company revealed that surging fuel prices have pushed operating costs to unsustainable levels, noting that authorized fares have not kept pace with fuel accounting for approximately 45%-65% of their operating costs.

The statement called attention to the preceding figures, including President Ferdinand “Bongbong” R. Marcos Jr., Senate, Department of Transportation, Department of Finance, the Department of Energy, and the LTFRB.

Provincial Bus Operators Association of The Philippines, Nagkakaisang Samahan ng Nangangasiwa ng Panlalawigan Bus sa Pilipinas, Inc., Soluboa, and the Mega Manila Consortium were among the groups who signed the statement.

Bus groups emphasized that provincial and city buses cannot independently impose fuel surcharges similar to those of airlines and sea transportation.

Victory Liner noted that passenger fares are VAT-exempt, while fuel purchases are subject to VAT, making the tax an added operating cost. 

The bus company further stated that operators invested in new buses and took out substantial loans to comply with required modernizing, adding that they now shoulder costs for fuel, loan payments, spare parts, tires, maintenance, insurance, and regulatory compliance.

“An impending wage increase will further add on to the pressure. We recognize that our employees deserve fair compensation. But higher wages must be supported by revenues sufficient to sustain both employment and operations.” Victory Liner continued.

They underscored that industries fail when regulated rates don’t cover costs, asking for a “fair and sustainable fare that reflects the real costs of operating public transportation.”

“If responsible operators are pushed into insolvency, commuters will ultimately suffer: fewer buses, fewer trips, longer waiting times, and the loss of vital connections between cities and provinces. Thousands of drivers, conductors, mechanics, and support personnel will also face the loss of their livelihoods.” Victory Liner urged.

The company added that they had complied with the government’s requirements, noting that it is the government’s turn to ensure the public transport system remains financially capable.