Citing rising oil prices and vehicle maintenance costs, the Land Transportation Franchising and Regulatory Board (LTFRB) is studying a “long overdue” fare hike for public utility vehicles.
Oil firms recently implemented the third consecutive increase in petroleum products since the new year.
The latest hike of P2.70 per liter for diesel, P1.65 for gasoline and P2.50 for kerosene, the highest oil price hike so far in January.
The oil price hike is attributed to the imposition of a new round of sanctions on Russian crude oil by the United States and is seen to take effect in the following days if the Organization of Petroleum Exporting Countries (OPEC) does not increase its production.
“Kung maibalik kaagad yung OPEC, magdesisyon, yan lang ho ang klarong neutralizer ‘no? Other than that, magkakaroon talaga ng tightness. So, may tendency ho na umincrease. Again, kung maibabalik ang OPEC plus magkakaroon ng reversal nung tendency na magkaroon ng increase,” said Atty. Rino Abad, director of the Department of Energy – Oil Industry Management Bureau.
According to the LTFRB, there are now four petitions for a fare hike, three filed by jeepney operators and the other by bus operators.
The minimum jeepney fare is P13 while the minimum bus fare is P15.
LTFRB said the petitions are seeking a fare increase of P1 to P3.
“I think an increase is already long overdue kasi sobra na ang itinaas ng presyo ng mga gasolina tsaka yung cost ng maintenance of these motor vehicles so it’s imperative that we act on it. Ang issue na lang is magkano ‘yung ibibigay na fare hike,” LTFRF chairman Teofilo Guadiz III said.
(“I think an increase is already long overdue because gas prices have drastically increased and there’s the cost of maintenance of these motor vehicles so it’s imperative that we act on it. The only issue is how much should the fare hike be.)
Guadiz added the LTFRB has asked the National Economic and Development Authority (NEDA) for a study on how a new fare hike would affect inflation.
Meanwhile some commuters and drivers said they would prefer if the minimum wage be increased instead and not the price of oil.
