LOCAL transport group Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide (Piston) Cebu is standing firm in its decision not to seek a fare increase.
Gregory Perez, chairperson of the 500-member group, said that burdening consumers with higher fares is not the solution to the current challenges, particularly high fuel prices.
In an interview on Tuesday, April 16, 2024, Perez reiterated the need for a more comprehensive approach that does not adversely affect commuters.
Perez emphasized that implementing a minimum fare increase in public transportation amid the prevailing economic situation would only inflate prices of prime commodities and goods.
“We are not keen on pushing for a fare increase because we know it will affect our passengers and, of course, the prices of prime commodities,” he said in Cebuano, adding that students would be directly hurt if a hike was implemented.
Push for P2 hike
Last week, the Alliance of Transport Operators and Drivers Association of the Philippines (Altodap), a group of traditional jeepney drivers, sought answers regarding the fare increase petition it had submitted.
The group urged the Land Transportation Franchising and Regulatory Board (LTFRB) to promptly address its petition due to increasing pump prices.
The group advocated for a P2 increase in the minimum fare of traditional jeepneys, proposing to raise it from P13 to P15.
Boy Vargas, Altodap president, said the LTFRB had informed them that their petition is under consideration.
However, the franchising agency has yet to issue a decision on the matter.
LTFRB spokesperson Celine Pialago, in a media interview, confirmed that the agency is currently conducting a thorough study of the petition to evaluate the proposed fare increase.
Oil price hike
Oil firms announced last Monday, April 15, a price hike that took effect on Tuesday, April 16. Pilipinas Shell, Cleanfuel, and Seaoil revealed increases of P0.95 per liter for diesel, P0.40 per liter for gasoline, and P0.85 per liter for kerosene.
Unsuitable
Perez cautioned against the proposed fare hike, deeming it unsuitable and warning that it might initiate a “domino effect,” leading to price increases in various sectors of the local economy.
He said that when public utility vehicle drivers raise their minimum fare to offset rising fuel costs, these additional expenses are indirectly passed on to consumers.
“Yes, if we talk about fare increases, there is a domino effect. It will bring higher prices for goods, like our basic goods,” he said.
Perez said scrapping the Oil Deregulation Law and suspending both value-added and excise taxes on oil remain the most effective ways to halt fuel price hikes.
He argued that government inaction and deregulation policies, particularly the law, are the main causes of the surging prices.
Downstream Oil Industry Deregulation Act
During President Fidel Ramos’s administration, Republic Act 8479, or the Downstream Oil Industry Deregulation Act of 1998, empowered market forces to set the prices of gasoline and other petroleum-based products for consumers.
This law also deprived the Department of Energy of its authority to intervene in the domestic oil market. / KJF