OIL companies are expected to impose the highest increases in fuel prices in history on Tuesday, March 15, 2022, and this has prompted transport operators to consider staging a transport strike.
Russ Mark Gamallo, Department of Energy (DOE) Visayas field director, said oil firms are expected to raise prices by around P6.20 per liter for gasoline, P11 per liter for diesel and P9 per liter for kerosene.
“So far, possible [the biggest increase ever since],” Gamallo told SunStar Cebu Monday.
The field director also noted that this is the 11th consecutive week of increase in oil prices recorded this year.
He reiterated that the conflict between Russia and Ukraine is just one of the reasons for the increase in oil prices, citing the country’s longstanding problem in procuring supplies due to the sanctions imposed by the United States against oil producers including Venezuela.
Despite this, Gamallo assured the public that the country, particularly the Visayas, has more than enough supply of fuels based on its constant inventory with the oil companies.
Stopped operating
Due to the succeeding oil price hikes, some public utility jeepney (PUJs) drivers in Metro Cebu have opted to stop plying their routes, while others have chosen certain days when they can sense a higher demand for public transport.
Gregory Perez, chairman of the transport group Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (Piston) Cebu chapter, said at least 10 traditional jeepney drivers plying routes in Cebu City and Mandaue City, have opted to return to their respective hometowns in the province.
“They will still return to the streets, but for now, they will see where oil prices go because here, they have nothing to eat. They said it’s better for them to return to their hometowns where there are root crops that they can eat,” he said in Cebuano.
Perez said the transport group in Cebu has about 500 members, including tricycle drivers.
Perez believes other drivers belonging to other transport groups in Cebu may have opted to do the same.
He emphasized that PUV drivers, including him, are dependent on their daily collection.
“If our daily collection is just enough to cover our vehicle rent and fuel, there would be nothing left over for our own needs. We would just have to borrow money if there is still anyone willing to lend to us,” he said.
Perez earlier said they would not seek a fare increase since it would also be a burden on the riding public who are already having difficulty with the minimum fare of P9 for traditional jeepneys and P11 for modern jeepneys.
Gamallo, however, reiterated that it is the discretion of the Land Transportation Franchising and Regulatory Board (LTFRB) whether it would impose an increase in public transport fares.
He said the DOE would not make any recommendations.
Gamallo said the DOE has allotted P5 billion for the implementation of the Pantawid Pasada Program which provides fuel subsidies to public utility vehicle operators amid the soaring fuel costs.
He also emphasized that they are encouraging oil firms to at least give P1 to P4 discounts.
LTFRB 7 Director Eduardo Montealto Jr. said his office has received petitions to increase the fare in public transport by as much as P5, which are still subject to public hearing.
Strike
Meanwhile, Piston Cebu’s Perez said a transport strike is imminent in Cebu to protest the fuel price hikes.
However, Perez said they are hoping that the government will act before they stage the strike as they are also thinking of the possible burden that will be experienced by the commuting public.
A gas station dealer of one of the oil majors sent an advisory to its Cebu clients Monday that diesel prices would increase by P13.15 per liter, gasoline by P7.10 per liter, and kerosene by P10.50 per liter from 6 a.m. of Tuesday, March 15.
Perez also said this new increase is so far the highest in the country’s history.
Perez said their group will also hold rallies and demonstrations in front of different gas stations in Cebu to protest the increase in prices of oil products.
He said Piston Cebu will not demand an increase in transport fares. Rather, what the government should increase is the minimum wage of the labor sector to mitigate the effects of the rise in fuel prices.
Perez also criticized the government’s distribution of fuel subsidies, saying not all drivers will receive the subsidy as most will go directly to the operators who are the ones holding the Pantawid Pasada cards.
Aid for tricycle drivers
In Mandaue City, the local government is set to give P5,000 in financial assistance to each legitimate tricycle driver/operator in the city amid the successive oil price hikes.
Councilor Jimmy Lumapas, chairperson of the committee on transportation, said about 2,545 tricycle drivers/operators will be given assistance should the City Council approve his proposed ordinance.
The tricycle driver/operator must hold a valid and subsisting Tricycle Franchise duly issued by the City Legal Office.
“However, when the beneficiary/claimant is not the declared owner of the Tricycle Franchise, he/she shall provide a Special Power of Attorney (SPA) and other relevant documents which may be required of him/her,” he said.
As of Monday, March 14, 2022, the City Council approved his ordinance on first reading.
The development comes as Mandaue City is also set to lower the tricycle fare to P10 from P20 next week.
This after the City Council also approved on Monday the resolution of Lumapas, reducing the fare from P20 and allowing the full seating capacity in tricycles with a maximum of five passengers, from the two passengers previously imposed amid the Covid-19 pandemic.
Apart from that, only one child aged seven years old and below, who will be traveling with his parents or guardians will be free of charge. This applies to children who will not occupy a space in a seat of the tricycle.
Lumapas said the P10 fare is subject to the prevailing fuel price in the local market and that it may be changed if the need arises. (MKG, IRT)