Provisional fare hike possible if diesel hits P60/liter amid Middle East war - LTFRB

MANILA, March 4 ------ The Land Transportation Franchising and Regulatory Board (LTFRB) said it may grant a provisional fare hike for all modes of public transport should regular diesel prices hit P60 per liter amid the ongoing Middle East war. This is to cushion the impact of rising oil prices on public utility vehicle (PUV) drivers and operators, while still keeping in mind the welfare of passengers, LTFRB Chairman Vigor Mendoza said.

He added that a fare hike could be withdrawn "immediately" if fuel prices eventually drop, saying they do not want to "overcharge" passengers. Meanwhile, if local oil firms agree to implement staggered fuel price hikes, Mendoza said the provisional fare increases can also be done in phases. Mendoza said the LTFRB would have to consult first the labor and socioeconomic agencies regarding the possible provisional fare increase since they also need to take into consideration the inflationary impact of such a move.

Based on the current situation, Mendoza is looking at a less than P1 provisional fare hike for jeepneys. But he said that other modes of public transportation could be granted a bigger increase. The last fare determination for P2P or point-to-point buses was done in 2014 or more than a decade ago, Mendoza noted. "They haven't gotten any fare increase despite the fact that fuel prices and maintenance costs have gone up and down. So the adjustment may be a little bit bigger," he said.

But the LTFRB stressed that its first recourse would be to provide fuel subsidies for PUVs instead of raising fares. Mendoza assured beneficiaries that they are now more prepared to start releasing fuel subsidies once the price of Dubai crude oil hits $80 per barrel in accordance with the law. "We are more ready than before, in the sense na ang dami na nating prep work na ginagawa, not only here in the central office, but even down to the ground, yung regional offices natin, na masama lahat ng dapat isama," he said. "As soon as the funds are out, ibaba na kaagad namin yan. Ang hinihintay lang nila, araw, hindi linggo," added Mendoza.

The LTFRB also guaranteed that even unconsolidated jeepneys would be given fuel subsidies.

Source: news.abs-cbn.com