Fare hike possible if diesel hits P60/liter – LTFRB

MANILA, Philippines — A provisional fare hike is being considered by the government in response to rising fuel prices sparked by the attacks on Iran by the United States and Israel.

If fuel prices hit P60 per liter, the Land Transportation Franchising and Regulatory Board (LTFRB) said it would “ring the bells” to signal a fare increase.

“We’re studying the options available to us,” LTFRB Chairman Vigor Mendoza II said yesterday.

With current fuel prices, a provisional fare increase of P1 is “not yet justified,” he said.

Gasoline prices have increased for eight consecutive weeks, while diesel and kerosene prices have been rising for 10 weeks.

There will be an independent consultation with stakeholders on permanent fare hikes, Mendoza said.

Jeepney and bus operators are seeking fare hike of P2, while provincial buses are asking for a fare increase of P0.50 per kilometer.

Point-to-point bus operators are seeking a 30 to 40-percent fare hike, noting that their fare matrix has not been updated since 2014. A base fare hike of P20 to P30 for ride-hailing services has also been proposed. Dialogue with taxi drivers and provincial bus operators is underway.

Documents for possible fuel subsidy distribution are being fixed by the Department of Transportation and LTFRB.

Fuel subsidies worth P2.5 billion will be given to public utility vehicle operators when fuel prices reach $80 per barrel. — Delon Porcalla