MALACANANG on Friday said a proposed fare increase for passenger jeepneys is premature even as fuel prices are projected to rise for what could be the eighth straight week.
Presidential Communications Office Undersecretary Claire Castro said the LTFRB was prioritizing discussions on possible bus fare increases, noting that buses do not have a provisional fare adjustment.
“Their priority is the discussion on increasing bus fares,” she said.
Meanwhile, consumers face another round of oil price hikes next week of as much as P0.60 per liter as markets react to tensions between the U.S. and Iran, pricing in the risk of supply disruptions.
Diesel prices are expected to increase by P0.40 to P0.60 per liter, while gasoline prices may remain steady or see a slight increase of up to P0.10 per liter.
Casto said the government is studying subsidies or other forms of assistance for jeepney drivers if no fare hike is granted.
Consumers are bracing for another round of oil price hikes next week of as much as P0.60 per liter, as markets react to heightened tensions between the United States and Iran and the risk of supply disruptions.
Diesel prices are expected to increase by P0.40 to P0.60 per liter, while gasoline prices may remain steady or post a slight increase of up to P0.10 per liter.
Castro said regulators are still reviewing petitions from transport groups and have not approved any fare hike.
“At this time, there is a hearing ongoing, carefully studying whether there will be a fare hike,” she said.
Castro said she had spoken with Land Transportation Franchising and Regulatory Board (LTFRB) chairman Vigor Mendoza and Transportation Secretary Giovanni Lopez on the matter.
She noted that the LTFRB believes a fare hike for jeepneys may be premature due to the existing provisional P1 increase.
“According to their computation, this provisional grant of a one-peso fare hike still covers the fuel cost for jeepneys,” Castro said.
She added that the petition filed by jeepney operators and drivers is not solely about fares but also about curbing illegal or “colorum” vehicles.
“What the jeepney operators and drivers are also asking for is not specifically a fare hike, but action against colorum vehicles,” Castro said, citing intensified enforcement efforts by the Land Transportation Office.
The fuel price projections are based on movements in the Mean of Platts Singapore (MOPS), the benchmark used by oil importers, and foreign exchange averages from Monday to Thursday.
Leo Bellas, president of Jetti Petroleum, said that with the resumption of MOPS trading on Feb. 19 after a two-day break, prices jumped by more than 5 percent from the Feb. 16 settlement.
He cited increased military activity and the higher likelihood of U.S. strikes on Iran, which have reduced prospects for a diplomatic resolution.
While gasoline MOPS prices softened due to healthy regional inventories, Bellas said higher freight costs and geopolitical risk premiums offset the possibility of a price rollback.
He added that a stronger peso against the U.S. dollar helped temper potential increases in domestic pump prices.
Rodela Romero, director of the Department of Energy’s Oil Industry Management Bureau, said global oil prices this week were influenced by geopolitical tensions, supply expectations and market sentiment, including developments involving the US, Iran, Russia and Ukraine.
She said uncertainty over nuclear negotiations and warnings of possible military action contributed to volatility, while tensions in Eastern Europe, including a reported Ukrainian drone strike on a Russian Black Sea port, heightened supply concerns.
Excluding other oil company costs and premiums, Romero said gasoline could post a rollback of about P0.45 per liter, while diesel and kerosene may increase by P0.05 and P0.10 per liter, respectively. Final adjustments will be determined after Friday’s trading.
On Feb. 17, oil companies raised gasoline prices by P1.20 per liter and diesel and kerosene by P0.60 per liter, marking the eighth consecutive weekly increase for diesel and kerosene and the sixth for gasoline. These brought total increases to P4.30 per liter for gasoline, P7.60 for diesel and P5.60 for kerosene.
