Oil firms to determine fate of fare cut petition

The testimonies of oil firm executives will determine the outcome of the ongoing deliberation on the petition for fare reduction, the Land Transportation Franchising and Regulatory Board (LTFRB) said yesterday.

LTFRB chairman Thompson Lantion said executives of the three big oil companies – Pilipinas Shell, Petron Corp. and Chevron Philippines – were invited to the Nov. 4 public hearing to shed light on the actual price of crude oil in the local market.

“The testimonies of the oil executives will determine the action of the LTFRB,” Lantion said.

The National Council for Commuters Protection (NCCP) is seeking a fare reduction of at least P2.50 in bus and jeepney fares across the country due to the series of oil price rollbacks in the past weeks.

Lawyer Vicente Millora, NCCP secretary-general and counsel for the petitioner, said they will refer to the LTFRB documents that will prove that the price of diesel has already reached P36 per liter , much lower than the P48 per liter being imposed by oil companies.

However, at least three major transport groups have opposed the petition, saying the price of oil in the local market is still very high despite major rollbacks in the world market.

Transport groups want the government to intervene or compel the oil companies to reduce their price in accordance with the price in the world market.

Lantion said if there is no more opposition in the next hearing they will require all parties to submit their memoranda and the issue will be deliberated upon in the next 15 to 30 days.

“If no other legal issues arise then we can impose the fare hike before Christmas,” Lantion said.    – Perseus Echeminada