Floranda and Redulla stressed that subsidies will not be enough unless the government suspends the excise and value-added taxes on petroleum products.
TRANSPORT group Piston and its allies stage a strike at Welcome Rotonda in Quezon City on Thursday, demanding a fuel price rollback and the abolition of VAT and excise taxes on petroleum products.
PHOTOGRAPH BY TOTO LOZANO FOR DAILY TRIBUNE
Transport groups on Thursday expressed deep dismay over President Ferdinand “Bongbong” Marcos Jr.’s suspension of the fare hike, warning that the move, while easing the burden on commuters, could push public utility vehicle (PUV) drivers and operators closer to financial collapse amid the surging fuel prices.
Malacañang ordered a halt to the fare increase approved by the Land Transportation Franchising and Regulatory Board (LTFRB), citing the need to shield the public from additional costs as global oil prices continue to rise due to the war in the Middle East.
Meanwhile, the government rolled out a “libreng sakay” (free ride) program, deploying buses from the Office of the President, Department of Transportation, Philippine Coast Guard, and Philippine National Police on key routes, including Quiapo-Welcome Rotonda, Welcome Rotonda-Cubao, Nagtahan-Cubao, Taft (UN)-PITX and Lawton-PITX.
Transport groups said the twin moves would offer only temporary relief to commuters while leaving the drivers to absorb mounting losses as the price of diesel breached P100-plus per liter and with the peso trading at P60.4 to a US dollar.
Economic analysts said inflation could reach 7 percent if the Middle East conflict involving the US and Israel on one side and Iran on the other continues (See related story).
Piston president Mody Floranda lamented that this was the second time this year the administration rejected calls for a temporary fare increase, noting that the last adjustment was a P1 provisional hike granted in October 2023.
Trips cut
“Whether it’s timely or not, we think it’s high time, because the last fare hike was in October 2023, and we look at how much income our drivers and operators have lost,” Floranda said in Filipino.
He warned that without a fare adjustment, drivers may be forced to stop operations as fuel costs continue to climb. Some operators have already cut their daily trips by up to two hours from the usual 12 to 16-hour shifts to cope with the losses.
Petitions for fare hikes for jeepneys, taxis, and buses have been pending with the LTFRB since 2023, with only assurances of weekly hearings given since February.
Lisza Buscaino-Redulla, president of United Transportation Coalition Philippines Inc., said government fuel subsidies — including the P5,000 assistance to tricycle drivers and PUV operators — are merely a “band-aid” that will likely go to paying off debts accumulated during the weeks of oil price hikes.
“We really don’t know when that aid will actually be released,” she said.
The Department of Transportation said P2.5 billion in fuel subsidies is being processed, pending the release of funds from the Department of Budget and Management, but it gave no clear timeline.
Both Floranda and Redulla stressed that subsidies, said to amount to P5,000 a month, will not be enough unless the government suspends the excise and value-added taxes on petroleum products.
Lost income
Legislation granting the President emergency powers to suspend the fuel taxes during price spikes has been passed by both chambers of Congress and now awaits the President’s signature.
The Department of Finance, however, warned that suspending the fuel taxes could cost the government up to P136 billion in lost revenues.
Floranda said the administration’s decision “misses the point,” insisting that unless the suspension of the fuel taxes is addressed, drivers’ incomes will continue to shrink.
The growing strain has prompted broader labor groups to join the calls for action.
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