Monday, November 03, 2008 Oil firms to be summoned over fare rollback
WITH oil companies recently cutting their pump prices, the Land Transportation Franchising and Regulatory Board (LTFRB) hopes to break last month's impasse on the fare rollback petition for public utility vehicles this coming Tuesday.
LTFRB chairman Thomption Lantion said they will summon representatives of oil firms to the November 4 hearing on the petition filed by the National Council for Commuter Protection Incorporated (NCCPI) seeking a fare rollback following the continuing downtrend in world oil prices.
"In the coming hearing (Tuesday), we will invite them (oil companies) to send representatives so that we can get their opinions and thoughts on the move for a fare rollback," Lantion said.
Commuter and transport groups met last October 14 to discuss the NCCPI's petition to roll back public utility fares.
Among the transport groups represented in the meeting were Pasang Masda, the Pinag-isang Samahan ng Tsuper at Operator Nationwide (Piston), and organizations of provincial and Metro Manila bus operators.
Earlier, Pasang Masda and the United Transport Koalisyon (I-Utak) said they are willing to lead a fare rollback amid a widening clamor from the public.
The LTFRB chief said Tuesday's hearing will enable oil firms to present their sides and arguments on the pricing mechanism of local petroleum products, adding that the transport groups have no problem with lowering down their fares.
The transport groups have voiced their opinion that additional rollbacks on diesel and gasoline be made before any fare rollback is implemented, according to Lantion.
"They (transport groups) are not objecting to a possible fare rollback but they said that gasoline and diesel prices must still go down," the official said.
He cited figures from the transport groups indicating they need fuel prices to go down to P37 to P40 per liter to effect a significant rollback.
Last week, oil players led by the "Big Three" (Shell, Petron, and Caltex) cut diesel prices by as much as P5-per liter while independent player Unioil Petroleum Philippines Incorporated implemented a P6-per liter rollback for diesel.
The NCCPI noted that based on current pump prices, fares ought to go down by P2.50 for public utility buses and P1.50 for passenger jeepneys for the first five and four kilometers, respectively.
If granted, the fare rollback will bring back the basic jeepney fare from P8.50 to P7 for the first four kilometers while the first five kilometers for ordinary buses will drop from P10 to P8 and air-conditioned buses from P12 to P10.
Last June, the LTFRB approved a P2 fare increase for ordinary and air-conditioned buses and a P1 hike for jeepneys based on the benchmark price of diesel of P52 per liter that time. (AH/Sunnex)
