This Thursday, July 16, Filipino commuters may soon face higher transport fares as global tensions push oil prices upward. Following recent US strikes against Iran, the Land Transportation Franchising and Regulatory Board (LTFRB) is scrambling to counter surging fuel costs, weighing a tough choice between massive government subsidies or making passengers pay more.
LTFRB Chairman Vigor Mendoza revealed that Transportation Secretary Jaime Bautista ordered an immediate review of the options, especially in light of the country’s recent minimum wage hike.
While the government currently spends P160 million a month on a P10 fuel discount for jeepney and UV Express drivers, expanding that safety net to all public utility vehicles would skyrocket the cost to P2.4 billion monthly.
Faced with that massive price tag, Mendoza indicated the regulator is ready to “bite the bullet” and approve fare increases instead of draining the state budget. He argued that the P2.4 billion could be used more effectively elsewhere, and that the recent minimum wage increase would cushion the inflationary impact of higher fares on the public.
The trigger point for the fare hike is set at P70 per liter. If fuel prices breach this mark, the LTFRB is prepared to greenlight the petitions. The board is finalizing its calculations and will submit its official recommendation to the Department of Transportation by Friday. /Clarence Pacaña
