This Simple Computation Proves Jeepney Modernization Program is Not Anti-Poor, Contrary to Piston’s Claims

The Pinagkaisang Samahan ng Tsuper and Operator Nationwide (Piston) staged a 2-day transport strike this week against the jeepney modernization program of the Duterte government. According to the group, this project is anti-poor. However, here’s a simple computation from Manila Times columnist Malou Tiquia, proving that it can actually help jeepney drivers.



First of all, the DOTr is offering a P1.6 million to jeepney drivers, or P19,180 a month payable in 7 years. This is for their new and modernized jeepney, which they have to pay P150,000 as initial down payment. It should be noted however that the government will buy their old jeepneys for P80,000 each. So, how can they pay the P19,180 monthly?

Let’s start first with the boundary system. The average monthly boundary per jeep is P1,000-P2,000, which is equivalent to P26,000-P31,200 a month, or P312,000-P374,400 a year. Therefore, in 7 years, the total boundary payment will be P2,184,000-P2,620,800. Note that the driver will never own the jeepney unless he buys it from the operator.

But with the modernized jeepneys, the driver will also be the owner of the jeepney. Based on computation, he can earn P6,820-12,020 a month, which is equivalent to P81,840-144,240 a year. And unlike the current system, the drivers will be the owner of the jeepney they are driving. Plus of course, the new jeepneys are safer and environment-friendly.

But how can the jeepney drivers pay the monthly amortization? As Malou Tiquia has mentioned, there will be a P2-increase in minimum fare because the modernized jeepneys are fully-air-conditioned. Therefore, if a driver has an average number of passengers of 300-400 a day, he will have an additional income (or savings) of P600-P800 a day.

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For the savings in fuel, old jeepneys can travel from 5 to 6 kilometers consuming 1 liter of diesel. But in modernized jeepneys, the same amount of diesel can reach 8 to 11 kilometers. And because the driver can save P300/day in fuel plus P600/day in fare, his total daily savings will be P900/day. This is equivalent to P23,400/month, or P280,800/year.



Meanwhile, Piston president George San Mateo threatened President Rodrigo Duterte on Tuesday, saying that they will conduct a transport strike every month if the administration will not listen to them. By the way, Piston gets support from leftists, including KMU, Bayan secretary general Renato Reyes Jr., and former Bayan Muna Rep. Teddy Casino.

Contributed by Salvi Dalida