This raises minimum fare to P10, same increase in Regions 3, 4
The government on Wednesday approved a provisional P1 increase of the minimum fare for public utility jeepneys, raising it to P10, even as the Department of Energy (DOE) said there was no relief in sight from the constant increases in already high fuel prices.
The Land Transportation Franchising and Regulatory Board (LTFRB) said the fare hike will cover jeepneys in Metro Manila, Region 3 and Region 4.
LTFRB executive director Tina Cassion said the LTFRB is balancing all factors, including the welfare of commuters, and noted that the National Economic and Development Authority previously said that even a P1 fare hike could trigger higher inflation.
Cassion said the first tranche of the government’s fuel subsidy to PUV drivers and operators was almost complete, with 238,212 out of 264,578 beneficiaries already receiving P6,500 in cash aid.
Public utility drivers and operators can expect to receive another round of the P6,500 subsidy by the first week of July, Cassion said.
On Wednesday, the DOE said fuel prices would continue to rise unabated for the next few weeks.
Interviewed by GMA News, the director of the DOE’s Oil Industry Management Bureau, Rino Abad, said they saw nothing that could offset the price increases.
Abad cited the European Union’s ban against oil imports from Russia, the potential surge of demand for fuel during summer in the Northern Hemisphere, and Russia’s ongoing invasion of Ukraine.
He said recent price rollbacks were due to the lockdowns in China, which are now almost over.
Senator Risa Hontiveros on Wednesday urged the LTFRB to immediately review the petition to increase the minimum fare of public utility jeepneys.
She said this will help boost the earnings of the drivers amid the rising fuel prices.
She made the statement after jeepney drivers said they were about losing income due to the prolonged period of fuel price hikes.
Hontiveros said the Department of Transportation (DoTr) already knew that a P6,500 fuel subsidy for PUJs would be good for only a month, yet in mid-March, it agreed with the recommendation of the economic managers to freeze transport fares at their 2018 levels, when diesel prices were only half of what they are today.
Hontiveros reiterated her call to immediately suspend the excise tax on fuels to improve the public transport system and fund the service contracting program.
“As much as I don’t want to point fingers, I would like to call out the economic managers for undermining the fare adjustment process at the LTFRB. This has caused unnecessary distress to drivers and is now endangering the viability of the transport system,” she said.
Senator Grace Poe said months of sluggish response from the concerned government agencies have pushed the transportation sector to the edge.
A number of public utility vehicle (PUV) drivers and operators are set to stage a wide-scale transportation strike unless the problem of constantly rising pump prices is sufficiently addressed.
“We fought for a critical P2.5-billion fuel subsidy provision for PUVs in this year’s budget,” she added.
“That such amount has not been fully disbursed while our country deals with a crisis of epic proportions is beyond comprehension.”
Poe also said they renewed their call to the executive department, particularly to the Department of Finance, to suspend the excise tax on fuel and petroleum products for such time until the global market normalizes again.
“This representation has pushed for the same cause in the last Congress and will do so again in the future if necessary,” she said.
“While it is true that failure to meet our revenue targets may have adverse effects on our country, so could a transportation strike which can paralyze operations in key areas and cost us much more,” she said.
Senator Imee Marcos urged the DOE to mandate an increase in the bio-ethanol content of gasoline and diesel to bring down fuel prices.
“While lawmakers are stuck in debate over a fuel excise tax suspension, increasing bio-ethanol content is the clear way forward to give some relief to consumers,” Marcos said.
The chairman of the Senate committee on economic affairs warned that Tuesday’s price hikes of P2.70 and P6.55 per liter of gasoline and diesel will not be the last, as Western sanctions on Russian oil exports and limited increases in Middle East supply will make world prices volatile until next year.
The Biofuels Act of 2006 requires oil companies to produce a gasoline blend with at least 10 percent bioethanol, but Marcos said the National Biofuels Board can recommend an increase in the minimum requirement, subject to the DOE secretary’s approval.
Based on fuel costs before the latest price hike, Marcos estimated that the price of gasoline can be brought down by about P3.60 per liter if bioethanol content is increased to 15 percent up to 20 percent – the level deemed safe for vehicles of model years 2001 or later.
Marcos also called on the Department of Agriculture to promote farming for bioethanol production that will address not just limited local supply and high fuel prices but also expand rural employment and the use of green energy.
Local production of bioethanol satisfied only about half of demand in 2019 before the COVID-19 pandemic slowed down investment in facilities for bioethanol production.
While sugarcane, sorghum, corn, and cassava can be grown in the country to produce bioethanol, the local supply deficit is covered by imports from the US, Australia, and South Korea.
“So much government land remains idle but can be used to increase bioethanol production. The goal is to become more competitive with cheaper imports and ensure our self-sufficiency,” Marcos said.
Also on Wednesday, Albay Rep. Joey Sarte Salceda, chairman of the House committee on ways and means, urged the Duterte administration to expedite the release of still undistributed subsidies, particularly the P500 monthly subsidy promised earlier by President Duterte to poor families for three months, amid surging commodity prices.
Salceda issued the call as the country’s headline inflation rose to 5.4 percent in May from 4.9 percent in April, based on reports from the Philippine Statistics Authority. Inflation levels are expected to persist as the Russia-Ukraine conflict rages on.
“The Energy Department has warned that more fuel hikes are coming next week. You will also see price increases in other commodities, such as bread and fish, in the coming months. So, we really need the aid to be released as soon as possible,” Salceda said in a statement.