On Rising Fuel Prices: An analysis of the jeepneys

Who or which sector is most vocal on the issue of rising fuel prices: If the airtime devoted to interviews with sectors - i would say, its the transport sector, particularly the jeepneys, and to a lesser extent, the taxis.

First, because jeepney transport associations are and has been, well organized and form a powerful bloc. But this should be viewed on a positive note because the association provides the loud voices to represent its members. Quite lately, with the rising fuel prices, it has become more of noise than advocacy, and have used this association, to blackmail government agencies. It does so with impunity, using the riding public as the reason, to push its agenda to get subsidies and threaten us commuters with their transport strike.

Let us view the jeepney transport system in terms of cost and benefit to ALL sectors.
1. The fuel diesel has increased by 8 pesos since start of the year alone. Just for the sake of computation, if every jeepney consumes about 30 liters per day, then at today's prices at say at 46 pesos, then each jeepney pays for P1,380 pesos per day for fuel.
2. Now let us further compute,that a route for example of Fairview to Quiapo has a distance of 15 km (estimate), each jeepney covers about 30 km per round trip and makes 4 trips per day for a total of 120 km. Using 30 liters for the 120km travelled translates to a fuel efficiency of four, just FOUR (4) LITERS PER km,. a far cry from city driving using a well maintained engine, say a 2.5 liter diesel, to about 10 km/ liter.
3. This means that with a well maintained engine, jeepneys will only be consuming less than half or just 12 instead of 30 liters. Their fuel investment daily should only be only 552 pesos and not 1380 pesos. This is savings that potentially could go to the drivers of about 820 pesos daily. Instead, these are spent on fuel and goes as sales and earnings of the oil companies.

4.Using these figures, we get the following statistics:
There are 202,891 registered jeepneys with the Land Transportation Office of which a quarter or 50,085 units are in Metro Manila.
The potential loss of income of each jeepney driver is 820 pesos which goes to the oil companies instead, or for the jeepney fleet operating in metro manila, is a whooping P41.47 million daily or using just 300 days operation per year, translates to P12.4 billion yearly at today's prices. How much was the intended government subsidy again?

5. In terms of fuel saved - the 18 liters/ day saved by each jeepney in MM is equal to 901,530 liters of diesel per day or 270.5 million liters annually.

6. if we pursue a fuel efficient jeepney fleet, who will be the gainers:
The jeepney drivers - as the 828 pesos will become part of their income.
The riding public - as there is no need for a fare hike. this windfall income is much more than what jeepney drivers are asking for increase.
The government on several aspects: lesser importation of diesel, no need for the subsidy and preservation of the holy grail of the government, the VAT income that could go to the development of renewable energy.
Every Filipino as the quality of air would improve considerable- cascading its effects on better health of Filipinos,less hospital bills and medicines and more productivity as people get sick less.

7. Now, the losers if jeepneys become efficient:
All those in the trade of oil, from gas stations to large oil companies as sales would greatly be reduced. As a consequence, traders and oil companies will become more competitive (rather than colluding)in plying their trade.
The owners of jeepneys that would need to install efficient engines.this is short term pain over long term gain.
Aha, the corrupt ones in the LTOs and DENR, that allow these jeepneys to pass the emission test. Question: have you heard of any passenger jeepney that did not pass the emission test? Grapevine gossip has it that large jeepney associations are exempt from subject to emission test?
The Jeepney associations - lose their potency as there will be no big issue to pursue. They might loose their income from the collections made at distinct points in metro manila. The one at 15TH AVENUE collects 30 pesos per day for those fleet plying the fairview cubao routes and another booth at Fairview.Pretty well organized. They say it is association dues, for what and for whom.

THINK AGAIN, THERE IS NO NEED TO INCREASE THE FARES OF JEEPNEYS nor SUBSIDIZE their fuel or raise jeepney fares. The solution is simple enough. The savings generated by efficient jeepneys is more than enough to offset the diesel price increases. Its a win -win situation.

P.S. What is surprising is that in Visayas and Mindanao, prices of diesel is 5 pesos higher, but the fare rate is the same, the numbers of commuters are much smaller, yet they survive and complain much much less.

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