In this research, the cost structures of bus and jeepney transport systems in Metro Manila were studied and cost functions for bus and jeepney modes were developed in order to identify policy recommendations related to the cost aspect of public transport regulation and management. It is found out in the study that economies of scale exist in bus operations, there is no conclusive result on economies of scale obtained for jeepney operations, bus-kilometer and average speed significantly affected cost of operations; and fuel consumption is a major component of total operating cost.
