Jeepney group to seek fare increase if

MANILA, Philippines — A temporary fare hike should be allowed if the price of diesel continues to go up, according to transport group Alliance of Transport Operators and Drivers Association of the Philippines (Altodap).

“We are currently studying the previous practice wherein the temporary fare hike is allowed once the price (increase) of diesel reaches P7 per liter. It will be automatic and if it goes down, the fare will return to the previous level,” said Altodap president Melencio Vargas.

The “Magnificent 7,” the country’s seven largest transport groups, asked the Land Transportation Franchising and Regulatory Board (LTFRB) to approve “surcharge fares” during rush hours in Metro Manila, Vargas added.

“Under our proposal, the surcharge fare will be implemented from 5 p.m. to 8 p.m. and from 5:30 a.m. to 8 a.m. every day during rush hour. According to LTFRB chairman (Teofilo) Guadiz (III), the mechanics are now being finalized. This will be an immediate solution to help the drivers,” he noted.

Diesel prices might increase by more than P4 per liter on Aug. 8. Last week, oil companies implemented a P3.60 per liter adjustment for diesel.

If the diesel price hike continues and reaches more than P7 per liter, jeepney drivers could lose more than P5,000 in direct income, according to Pinagkaisang Samahan ng mga Tsuper at Operator Nationwide (Piston).

“Based on our computation, the direct income of drivers was reduced by at least P90 per day and at least 2,250 per month with the oil price hike (last week). If the adjustment (for diesel) reaches more than P4 (per liter), this will mean more than P5,000 decline in the direct income of the drivers,” Piston national president Mody Floranda said in a radio interview over dzBB on Sunday.

Congress should review the Oil Deregulation Law, Floranda added.

“Almost 26 years after its implementation, it removed the power of the Department of Energy to review the oil price increases. It (oil price) does not go through legal processes, no public hearings. The announcement of an oil price hike is being done via text,” he explained.

The Oil Deregulation Law enabled oil companies to dictate price fluctuations, he noted.

Vargas supports reviewing the Oil Deregulation Law and called for the immediate release of fuel subsidies for transport groups.

“During our meeting with the LTFRB, the issue of fuel subsidy was discussed and according to Chairman Guadiz, there is a small budget for this and we hope that this will be released soon,” Vargas said.

Fuel subsidy

The fuel subsidy has become a source of conflict between drivers and operators, according to Floranda.

“We requested (the LTFRB and the Department of Transportation) that the subsidy for the driver… for the operators should be different,” he said in Filipino.

Piston’s proposal has also been communicated to the Office of the President, aiming for a dual-benefit system, he noted.

The LTFRB announced last month a P6,000 fuel subsidy to public utility vehicle drivers. Last year, a P6,500 fuel subsidy was provided.

The distribution mechanics for the subsidy is being finalized, Floranda added.