NEDA chief Pernia: Fresh fare hikes may fan inflation

The Land Transportation Franchising and Regulatory Board on Friday signed the order granting the P1 provisional fare hike for public utility vehicles in Metro Manila, Central Luzon and Calabarzon. The order effectively increased the fare for the first four kilometres to P9 from P8.
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MANILA, Philippines — The Philippines' chief socioeconomic planner on Thursday warned that the latest round of fare hikes may fan inflation, which is now among the hottest in Asia.

The Land Transportation Franchising and Regulatory Board, or LTFRB, granted Thursday morning a provisional one-peso hike in bus fares for the first five kilometers. Bus commuters will be charged another P0.15 for every succeeding kilometer.  

The LTFRB’s new order came as Filipino commuters brace for a P10 jeepney fare. Jeepney operators and transport groups sought the fare increase due to higher fuel prices.

In a media interview, Socioeconomic Planning Secretary Ernesto Pernia said the recently approved fare increases may have inflationary impact.

Pernia also said the fare adjustments granted by transport regulators were higher than what economic planners had expected.

Inflation hit a new nine-year high of 6.7 percent in September, amid food supply problems, a weak currency, and surge in price of oil in the international market, which translated to higher local pump prices.

Transport costs spiked 8 percent last month from 6 percent a year ago.

Year-to-date, gasoline price jumped P10.55/liter, while prices of diesel and kerosene increased P11.50/liter and P10.50/liter, respectively. — with a report from BusinessWorld

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