Transport groups slam ‘insufficient’ fare hike

MANILA, Philippines — A fare increase of P1 for land transport services is not enough to offset profit losses from recent oil price hikes, transport groups said yesterday.

Pointing out that the approved fare hike came from a petition in March “when pump prices were around P45 to P50 per liter,” Manibela chairman Mar Valbuena said they are hoping “it can be increased further by P1.”

Piston national president Mody Floranda said pump prices have increased by around P50, resulting in jeepney drivers losing at least P1,000 a day.

Transport groups are on strike until tomorrow, demanding that the government roll back pump prices and suspend fuel-related taxes.

Oil companies are set to roll back pump prices across the board today, with diesel, the fuel of traditional jeepneys, dropping by P7.57 per liter.

Excise taxes on liquefied petroleum gas (LPG) and kerosene have been suspended anew by the Bureau of Internal Revenue (BIR) to tame surging fuel prices.

Higher jeepney fares can still be sought by transport groups before the Land Transportation Franchising and Regulatory Board.

Acting LTFRB Chairman Greg Pua said petitions are still pending and a hearing will be set.

“We will make them submit their evidence to explain why the existing fare is not enough, taking into consideration this new fare as compared to their expenses,” Pua said.

Malacañang assured transport workers that fuel subsidies and other forms of aid will be maintained.

Fuel prices cut this week

Minimum price cuts of P0.24 per liter for gasoline, P7.57 for diesel and P5.85 for kerosene have been prescribed this week by the Department of Energy.

Rino Abad, director of the DOE’s Oil Industry Management Bureau, said the rollback reflects easing supply concerns following increased oil flows from Saudi Arabia.

Based on reports, a significant portion of Saudi Arabia’s exports through its east-west pipeline could resume.

Parts of the Petroline were knocked out earlier this month by drone attacks, which the Middle Eastern country blamed on Iraqi militias.

Jetti Petroleum president Leo Bellas, however, said the slow progress of diplomatic talks between the United States and Iran continued to keep prices elevated.

Excise taxes

Kerosene and LPG’s excise taxes are suspended anew after the DOE’s certification that the one-month average Dubai crude oil price reached $99.41 per barrel from Aug. 13 to Sept. 11, which is above the $80-per-barrel-threshold for fuel excise tax suspension, the BIR said.

Excise tax rates will revert without the need for further issuance a week after the one-month average Dubai crude oil price falls below $80 per barrel.

Executive Order 125, issued on Sept. 25 by President Marcos, followed the July 8 lifting of EO 114 after prices fell below the $80 threshold.

Fare guides

Pua has ordered regional offices and transport operators to assist drivers in securing fare guides for the implementation of the approved fare hike.

The official fare matrix will be required for display starting Jan. 1, 2027.

“We would like to inform operators and drivers that, for now, a fare matrix is not required to implement the fare increase. All that is needed is a fare guide,” Pua said.

The fare guide is on the LTFRB website and can be posted in public utility vehicles, Pua said.

Traditional jeepneys’ minimum fare will increase to P14 from P13, while modern jeepney’s fare will rise to P17 from P15.

Fares for buses, UV Express, taxis, transport network vehicle services and point-to-point buses will also increase. — Brix Lelis, Aubrey Rose Inosante, Helen Flores, Evelyn Macairan