LTFRB to justify amount to DOTr; PNP watching gas stations
Fare hikes for jeepneys and buses will be announced Tuesday as the government grapples with the impact of rising global oil prices, Land Transportation Franchising and Regulatory Board (LTFRB) chairperson Vigor Mendoza said yesterday.
Another round of steep oil price increases is also expected tomorrow, with diesel projected to rise by P19 to P22 per liter and gasoline by P12 to P16 per liter as tensions in the Middle East continue to roil global energy markets.
In a TV interview, Mendoza said the fare increase had already been decided, but the exact amount still needs to be justified to Department of Transportation Secretary Giovanni Lopez, who oversees the LTFRB.
“The fare increase is already certain. Yung amount, ayan ang kailangan pa namin i-justify kay DOTR Secretary Giovanni Lopez (bukas),” Mendoza said.
Transport group Piston has called for a provisional fare increase of P2 on March 16, to peg the minimum at P15, amid the jump of P17 to P24 per liter in pump prices. The driver’s group said it will announce today plans for protest actions.
Mendoza said the agency must ensure that the adjustment would not overly burden commuters or worsen inflation.
“We cannot impose fares that are too high because it would be too difficult for passengers. We also coordinate with other government agencies on the impact on inflation. We do not want prices of goods to rise too much because of our decision,” Mendoza said.
The LTFRB said the adjustment will apply to transport sectors that earlier filed petitions for fare increases, including jeepneys and buses.
However, fare petitions from taxis and UV Express units will not be included in Tuesday’s announcement because they still have to undergo hearings and nationwide consultation process.
In related developments:
• Amid the fuel crisis, the Philippine National Police (PNP) said it has stepped up monitoring of gas stations that have temporarily closed operations.
PNP chief Jose Melencio Nartatez Jr. said local police commanders were ordered to coordinate with local governments and the Department of Energy (DOE) to determine the circumstances behind the closures.
“We in the PNP fully understand the situation that gas station owners face amid the challenges brought by the situation in the Middle East. But if the sudden closure is for an illegal scheme, then expect police action on this matter,” Nartatez said.
The DOE earlier requested police assistance in monitoring stations suspected of taking advantage of the crisis.
• In the Senate, Erwin Tulfo urged lawmakers to include gasoline in the proposed suspension of fuel excise taxes, saying the measure should also benefit motorcycle riders.
Speaking during a hearing of the Senate Ways and Means Committee, Tulfo noted that about 8.5 million Filipinos rely on motorcycles for transportation and livelihood.
“They use gasoline, so we cannot limit the suspension of the excise tax to diesel. What will happen to them if gasoline is not included?” he said.
• Mody Floranda, national president of the Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (PISTON), said the group would proceed with protest actions over the economic impact of the Middle East conflict.
“It is our right to continue this action. The United States has a major role in the aggression, and we are among those affected by the ongoing war,” Floranda said.
• Economist Alvin Ang said temporary measures such as suspending fuel excise taxes could help ease the immediate impact of price spikes but would not provide a lasting solution.
“Even if we have that, it is not sustainable because we do not know how long the conflict will last. It might work temporarily, perhaps for about a month,” said Ang, Professor of Economics at Ateneo de Manila University and currently the Director of the Ateneo Center for Economic Research and Development (ACERD).
“The problem will not end tomorrow. The impact on us will be significant and not easy to remove. It will spread to other products that use oil.Hindi ito bukas tapos na ang problema,” he told GMA News.
Transport leaders said drivers continue to operate despite rising fuel costs because many have no other source of income.
Melencio Vargas, president of the Alliance of Transport Operators and Drivers Association of the Philippines (ALTODAP), said many drivers are elderly and have limited education, leaving them few employment options.
“We will really have to endure. If we can bring home P300 to P400, that is at least enough to buy rice,” Vargas said.
He added that fuel subsidies expected from the Department of Social Welfare and Development (DSWD) and the LTFRB could help ease drivers’ financial burdens.
Floranda said the group would hold a press conference today to announce the schedule of its planned transport strike.
Some motorists have complained online about unannounced gas station closures, raising concerns about possible hoarding or price manipulation.
PNP chief Nartatez said help desks have been set up nationwide to receive reports from motorists while monitoring teams inspect stations suspected of hoarding fuel or inflating prices.
“Our goal is to protect the people against unfair practices amid rising oil prices,” Nartatez said.
Karlo Adriano, undersecretary of the Department of Finance, said the proposal pushed by Tulfo would be reviewed by the Development Budget Coordination Committee and the DOE as part of their recommendations to the president.
Tulfo also warned against political interference in the distribution of fuel subsidies.
“The money being distributed does not come from the pockets of politicians. It comes from the taxes of the people, so there should be no political interference in its distribution,” he said.
Ang of Ateneo also suggested that members of the Association of Southeast Asian Nations (ASEAN) consider releasing a small portion of their strategic fuel reserves as a gesture of regional cooperation, noting that the Philippines currently chairs the regional bloc.
