THE Land Transportation Franchising and Regulatory Board (LTFRB) Central Office is still evaluating whether to implement a fare increase or provide fuel subsidies. This comes as fuel prices show some stability after Iran chose not to disrupt oil and gas tanker traffic through the Strait of Hormuz.
In a phone interview on Tuesday, June 24, 2025, LTFRB 7 Director Eduardo Montealto Jr. said their central office, under the Department of Transportation (DOTr), is closely monitoring the situation. They are particularly focused on the impact of global oil price volatility driven by ongoing tensions in the Middle East.
“That’s why there are plans to either provide a fuel subsidy or implement a fare increase, but no decision has been made yet,” Montealto said. “We, from the regional offices, are still waiting for the final issuance of the memorandum circular.”
Montealto also mentioned that the acceptance of a ceasefire proposal from United States President Donald Trump by Israel and Iran could help reduce global oil prices, calming supply fears in the Middle East.
He emphasized that any fare adjustment must be based on recommendations from national agencies, such as the Department of Economy, Planning and Development (formerly the National Economic and Development Authority), the Department of Trade and Industry, and stakeholders in the transport sector. Data collection is ongoing, and the LTFRB Central Office is working to balance the concerns of both operators and commuters.
“We can’t determine when a decision will come because it’s difficult to strike a balance,” he explained. “If we go for a fare increase, commuters will be affected.”
Staggered increases, pending petitions
On Monday, June 23, the Department of Energy (DOE) announced that oil companies agreed to stagger price increases to lessen the impact on consumers.
The first round of increases took effect on Tuesday, June 24. This followed a more than seven percent drop in oil prices on Monday (US time), losing over $5 a barrel. This occurred after Iran’s decision not to disrupt oil and gas tanker traffic through the Strait of Hormuz, a crucial waterway for approximately a fifth of the global oil supply. Instead, Iran reportedly attacked a US military base in Qatar in retaliation for US attacks on its nuclear facilities over the weekend.
Despite these developments, a second round of oil price increases is set for Thursday, June 26. Each round will raise gasoline prices by P1.75 per liter, diesel by P2.60, and kerosene by P2.40.
According to DOE Officer-in-Charge Sharon Garin, the staggered approach aims to ease the burden on the transport and agriculture sectors.
The DOTr also confirmed that P2.5 billion has been set aside for fuel subsidies for public utility vehicle drivers and operators, following a directive from President Ferdinand Marcos Jr. The LTFRB is currently finalizing the program guidelines.
Montealto confirmed that a P5 fare hike petition remains pending at the national level, but no formal petition has been filed in Central Visayas in response to recent fuel increases.
Meanwhile, Ellen Maghanoy, chairperson of the Federation of Cebu Transport Cooperatives, confirmed ongoing discussions about a possible fare hike. However, she clarified that the proposed P1 increase remains unofficial pending a memorandum circular. She added that modern public utility vehicle (MPUV) operators are struggling with high fuel costs, as their units run on diesel and consume more fuel than traditional jeepneys. Many are still repaying loans on their modern units.
Drivers feeling the pinch
Public transportation drivers in Cebu City are already feeling the impact of the fuel price hikes. MPUV drivers Leon Hingoyon and Johan (who declined to give his last name) reported spending between P200 and P700 daily on fuel, with a take-home income averaging P1,000. They expressed concern that further fuel hikes would erode their earnings and hoped for government intervention.
“I hope the government can manage the changes in fuel prices,” Hingoyon said.
Another MPUV driver, Jason Bourne Estrada, stated he earns about P2,000 daily, spending P700 on fuel and another P700 on unit rental. / CDF WITH FRANCES IBO AND DANE RIECHEL OJA, VISAYAS STATE