No fare increase

Transport groups will not push for a fare hike after the government successfully persuaded oil companies to give a discounted diesel price to Public Utility Vehicles (PUVs).

This was announced by MMDA Chairman Bayani Fernando and Energy Secretary Vincent Perez after the Regional Development Coordinating Council meeting yesterday at the MMDA office in Makati City.

Perez told reporters that there would be no fare hike at least until Sept. 15.

Oil companies Petron, Seaoil, Caltex, Shell, CityOil, Unioil and USA 88 have agreed to give a P0.20 to P0.50 per liter discount to PUVs.

At least 46 gas stations owned by these oil companies and located in strategic thoroughfares in Metro Manila will be offering special pricing incentives to the public transport sector.

Perez explained that the gas stations would base the discount on "market forces" such as the location of the gas station.

"These price incentives are being offered unilaterally particularly in areas strategically located to cover the routes serviced by Fejodap, Altodap (Fercoda), PCDO-ACTO, Pasang Masda, and Piston," the Department of Energy said in a statement.

For the Public Utility Buses (PUBs), Perez said Mrs. Arroyo requested bus companies with their own gas pumps to let other bus companies use them.

At least two bus companies have volunteered to let others use their gas pumps, Perez said.

"It’s like a big brother-small brother program," he explained.

Gary Alvin Peñalosa, vice president and spokesperson of the North East Metro Bus Operators Group (Nembog) said the discounts offered "were acceptable."

In her visit to the Unioil Gas station in Baclaran, Mrs. Arroyo said that aside from the special price incentive, there are other things that the government is doing to prevent the increase in fares.

"These steps would help the needs of jeepney drivers and avoid fare hikes," she said.

"I hope that other oil players will expand their scope in this program so that public buses and tricycles will be included," she added.