Transport groups lament Marcos' suspension of fare hike amid skyrocketing oil prices

Transport groups on Thursday expressed deep dismay over President Marcos Jr.’s suspension of a fare hike, a little relief for drivers and operators of public utility vehicles (PUV) in the face of the persistent oil price surge, which has resulted in significant income losses.

PISTON president Mody Floranda lamented that this was the second time this year that Marcos rejected transport workers’ plea for a temporary fare hike following a spate of oil price hikes. The first was supposedly implemented in January.

“We are surprised by these positions because, whether it’s timely or not, we think it’s high time, because if we look at how much our drivers and operators have lost income, the last fare hike was in October 2023,” Floranda said in Filipino in a radio interview. 

Floranda was referring to the P1 provisional fare increase that was approved by the Land Transportation Franchising and Regulatory Board for both traditional and modern jeepneys nationwide. 

However, Floranda pointed out that the hike was merely short-lived because fuel prices have risen dramatically over time, leaving PUV drivers with little to no income.

If the skyrocketing oil price persists without fare adjustments, Floranda warned that PUV drivers will be forced to stop their operations. 

As early as March, or almost three weeks into a consistent oil price surge, PUV operators are already cutting their operations by two hours, from their usual 12 to 16-hour trips per day, according to Floranda. 

Petitions for a fare hike not only for jeepneys but also for taxi and bus operators have been pending with the LTFRB since 2023, but haven’t yet been approved. 

The only assurance the LTFRB has provided is that it will hold weekly hearings to determine whether the proposal is feasible, starting last February.

TNVS hit, too

According to Lisza Buscaino-Redulla, president of the United Transportation Coalition Philippines Inc., a fare increase will not fully address the plight of PUV drivers grappling with rising fuel costs. 

While the Marcos administration has implemented preventive interventions to cushion the impact of the oil crisis, such as the P5,000 fuel subsidies for tricycle drivers and PUV operators, Redulla called it a mere “band-aid” solution, as the aid is likely to be used to pay off accumulated debts from weeks-long oil price shocks. 

“We really don't know when that aid will actually be released, if that was the basis for canceling the fare increase that [PUV drivers] should have been enjoying right now to sustain and continue their livelihood,” Redulla said in a Filipino radio interview. 

The Department of Transportation announced Wednesday that the P2.5 billion in fuel subsidies for PUV drivers, including ride-hailing cars, is already underway, pending the release of funds from the Department of Budget and Management. The DOTr, however, did not provide a clear time for the release. 

Both Floranda and Redulla lamented that subsidies alone are not enough to keep transport operations running, unless Marcos immediately suspends the excise tax on petroleum products ahead of another spate of big-time oil price spikes.

The House of Representatives and the Senate already passed their respective versions of the prioritized bills that would grant Marcos emergency powers to reduce or suspend excise tax on petroleum products during periods of high global prices. The enrolled bill awaits Marcos’ signature to become a law.

The Department of Finance warned that suspending the excise tax could cost the government a staggering P121.4 billion in revenue, though the projected shortfall could reach as high as P136 billion if coupled with the proposed suspension of the value-added tax. The estimated revenue foregone covers only eight months, from May to December. 

Senator Risa Hontiveros asserted that a supplemental budget from Congress must complement the suspension of the excise tax to provide direct assistance to the sectors hardest hit by the oil crisis, including farmers and fisherfolk.

Initial projections pegged the supplemental budget at P52.8 billion, covering subsidies for repatriation, transportation, and agriculture for the whole year.