Baguio drivers warn of collapse amid rising fuel costs

BAGUIO CITY — Transport leaders and drivers in Baguio City and Benguet have warned of a looming collapse in public transport operations, citing the widening gap between soaring fuel prices and stagnant fares.

Drivers and members of transport cooperatives said the current fare system no longer reflects the actual cost of diesel, which has more than doubled in recent years, leaving many struggling to sustain daily operations.

Veteran operators noted that the P13 minimum fare was set when fuel prices were around P64 per liter, arguing that fares should be adjusted by at least 50 centavos for every P6 increase in fuel costs to remain viable.

The financial strain has forced some transport cooperatives to tap into emergency funds just to keep vehicles running. One cooperative leader said they had spent around P70,000 to subsidize fuel for members, warning that operations would have stopped without such intervention.

Fuel expenses have surged sharply, with bulk purchases of 4,000 liters now costing about P400,000 — double the roughly P200,000 spent in previous years.

An operator-driver said some routes have already reduced trips to as few as three days a week in a bid to conserve fuel and avoid bankruptcy.

Beyond fuel costs, drivers also raised concerns over the government’s transport modernization program, which they described as financially burdensome. Some operators said monthly amortizations for modern units could reach as much as P60,000, making it difficult to sustain operations alongside rising fuel expenses.

Delays in government subsidies and service contracting payments — reportedly taking up to two years in some cases — have further aggravated the situation, deepening frustration among transport workers.

Transport groups are now calling for sweeping policy reforms, including the repeal of the Oil Deregulation Law, suspension or removal of value-added tax and excise tax on fuel, and the imposition of a price cap of P70 per liter. They also urged the government to audit oil companies for possible price manipulation and explore direct fuel procurement from international markets to supply cooperatives at lower costs.

The sector likewise called for dialogue with government agencies, urging officials to conduct on-the-ground consultations to better understand the plight of drivers.

Amid the crisis, transport workers and commuters have begun organizing mutual aid efforts. Through the Baguio Commuters Network, volunteers — including students — have been distributing food and basic goods to drivers affected by the rising costs.

Transport leaders stressed that while they remain committed to complying with the law, the current system has made it increasingly difficult to survive, calling for urgent and practical government intervention.