Salceda calls on Marcos gov't to bring down cost of modern jeeps to P600,000 per unit

House ways and means panel chairperson Joey Salceda on Thursday called on the Marcos administration to bring down the price per unit of modern jeepneys to P600,000 to P1 million instead of its current P2 million price tag.

“The government should first ensure that the domestic jeepney manufacturing sector is an option for the PUV (Public Utility Vehicle) modernization program, and assist it in producing cheaper but similarly modern and efficient units,” Salceda said in a statement.

“If we can bring the cost of the unit to P600,000 to P1 million, that becomes more realistic for both the jeepney operator, and on a cost-benefit basis. I think the domestic manufacturing sector can do it. But we need to support them,” Salceda added.

Tapping local manufacturers, Salceda said, would yield return of investment in around seven years.

He added that sidelining the domestic manufacturers would only bring problems in the long run because when the time comes that the expensive “modern” jeepneys are due to retire, operators will not do so because they have not recouped their costs.

“Without subsidies, operators will need as much as 22 years to recoup the value of their investments in new jeepneys,” Salceda pointed out.

“It’s not that jeepney operators don’t want to modernize. It’s just that, financially, it’s suicide. It makes no sense,” he added.

In addition, Salceda also called on the government to buy out old jeepneys for cash and consider emissions “on a per capita basis,” since the more modern jeepneys can accommodate fewer passengers than traditional jeepneys.

Salceda said the traditional jeepney produces some 0.33 kg of carbon dioxide emissions per passenger per year, while the modern jeepneys would still produce some 0.25 kg per passenger due to smaller capacity.

“It’s a 31% saving in per passenger emissions for a vehicle that costs as much as 620% more. We need a cheaper, domestically manufactured jeepney that modernizes the traditional one.”

Salceda’s call was also earlier made by state-run banks LandBank of the Philippines (LBP) and Development Bank of the Philippines (DBP), the designated fund sources of loans for the proposed PUV modernization program, with the banks saying that current pricing is not viable for PUV drivers and operators.

The current cost per unit of a modern jeepney, according to state-run banks, is at P2.3 million to P2.8 million pesos.

Last month, transport groups held a strike that lasted for two days to urge the government to revisit aspects of the PUV Modernization Program.

The PUV modernization program started in 2017. It aims to replace jeepneys with vehicles that have at least a Euro 4-compliant engine to lessen pollution, but drivers and operators complained about the steep costs. —VAL, GMA Integrated News