‘Dagdag-bawi, barya’ fare hike

A day after Land Transportation, Franchising and Regulatory Board (LTFRB) chairman Vigor Mendoza II announced the newly approved fare hikes for public utility vehicles (PUVs), President Ferdinand “Bongbong” Marcos Jr. (PBBM) stopped its implementation. Supposed to start yesterday, the LTFRB was all ready and set to effectively implement the fare hike, Mendoza told us at our Kapihan sa Manila Bay news forum last Wednesday.

Barely a few hours later that day, the President suddenly ordered the Department of Transportation (DOTr) “to defer for now” the scheduled fare hike. In a hastily aired public video message, PBBM did not say for how long the suspension on fare hike will remain.

“Let’s postpone it for now because we are in the middle of a situation where we need to continue to support our commuters, all our workers, students, everyone who uses our transportation system,” the President explained.

An attached agency of the DOTr, the LTFRB chairman was informed about the President’s decision after our Kapihan ended before noon of Wednesday. Mendoza even advised all PUV drivers and operators to print from the LTFRB website the new matrix for the fare hike adjustments. The LTFRB-approved fare matrix is required to be posted in all public transport vehicles as guide also for passengers.

The Chief Executive vowed more government measures to cushion the impact of higher pump prices of diesel and gasoline in the Philippines. The President cited, among other remedial measures, the reduction of toll fees, distribution of “ayuda” and fuel subsidy to PUV drivers and operators to stave off the price shocks due to supply disruption from the strife-torn, oil-producing Middle East.

The President’s suspension of fare hikes was – for all intents and purposes – a calibrated move.

But such presidential action was taken not without any consideration for its projected repercussions. Transport fare hikes will definitely trigger chain reaction of resulting increases of prices of other basic goods and services. Before the fare hike, the inflation rate in the Philippines for the first two months of this year, or average consumer price index, had already inched up quickly to 2.4 percent in February, up from 2.0 percent in January.

The fare hike suspension came also a few hours after both chambers of the 20th Congress approved speedily the bill on excise tax suspension before they adjourned their sessions on the same day. As per joint congressional calendar, Congress will go on a one-month Lenten recess starting today.

The House of Representatives decided to adopt in toto the Senate version that seeks to authorize the President to suspend excise taxes on imported refined petroleum products as crude oil prices breach $100 per barrel in the world market. By doing so, Senate President Vicente “Tito” Sotto III explained a Senate bill, when adopted by the Lower House in its entirety – or vice versa – will no longer go through the required bicameral conference committee (bicam).

Hence, Sotto pointed out, the Senate version of excise tax suspension becomes an enrolled bill, the printed copy of which will, in turn, be automatically submitted to the Office of the President for approval and signing into law. Moreover, the shortened legislative process was facilitated no less by PBBM. He earlier certified both the Senate and House versions as urgent administration priority bills.

That is, if PBBM will be amenable with the final version of this Congress-approved bill. Or the President opts instead to use his constitutional power to amend the tariff while Congress is not in session.

Economic managers of PBBM previously informed the Senate it will take 30 to 45 days for pump prices to fully reflect the excise tax relief while oil companies must first deplete their existing inventories purchased under the taxed rates. Once excise taxes are suspended, it is expected to lower gasoline prices by P11.20 per liter and diesel by P6.72 per liter.

Other than benefits to be derived from the excise tax suspension on refined petroleum products, the LTFRB chairman noted as much as P5,000 direct cash subsidy is currently being distributed by the government through the Assistance to Individuals in Crisis Situations (AICS) program of the Department of Social Welfare and Development (DSWD). On top of this one-time ayuda, Mendoza added, the DOTr has set aside as much as P2.5 billion of fuel subsidy to be distributed starting next week to PUV drivers and operators through their respective local government units (LGUs).

Mendoza reassured the affected public transport sector the “whole of government” has been looking into other ways for another “wave” of aid and assistance. “We don’t know how long this is going to take… we might run short. If we need to add a second, third wave of aid, we will do that,” the LTFRB promised.

“Right now, we’re just putting solutions together. I hope that this ends as quickly as possible,” he added.

Mendoza though strongly took exception to complaints of leaders of militant drivers’ groups that the government gave only “pittance” amount of P1 fare hike to drivers and operators of “traditional” or legacy jeepney units, while modern PUJs were granted P2. Mendoza clarified the LTFRB much earlier granted “provisional authority” to traditional PUJs to raise fares by P1 in 2023 when crude oil market first hit the $80 per barrel mark. He recalled the LTFRB did not roll back PUJ fares when diesel prices returned to much lower levels.

“It is their right to protest but I hope they understand first that these are difficult times, these are not simple and ordinary times,” Mendoza pointed out.

The LTFRB chief made these public appeals as militant public transport groups proceeded yesterday with their mass protest strike. Aside from demands for higher fares, they are pressing also for the suspension of 12 percent value added tax on the sale of refined petroleum products.

Dagdag-bawi, barya fare hike, they denounced Marcos.

It is a really difficult “balancing act,” Mendoza sighed. Obviously, PBBM wanted to make a populist action that will benefit the greater interests of the greater majority of Filipinos.