Jeepney group: Time for another fare hike

A transport group leader on Tuesday threatened to stage a nationwide strike if the Land Transportation Franchising and Regulatory Board (LTFRB) junks their petition for fare increase.

"If ever our petition for P1.50 increase will not be heard, [we will] conduct a nationwide strike," Efren de Luna, president of the Philippine Confederation of Drivers Organization-Alliance of Concerned Transport Operators, told ABS-CBN's morning show, "Umagang Kay Ganda."

De Luna said the LTFRB was scheduled to hear their petition for a P1.50 increase in the minimum jeepney fare rate for the first five kilometers. The minimum jeepney fare rate is P7.50.

He said the LTFRB has no reason to junk their petition citing the series of pump prices in the last two months.

"There is a memorandum circular that allows individual operators to file fare increase petitions once oil prices increase," de Luna said.

Oil companies implemented a P1 increase in oil prices Saturday morning. Diesel is already at P42 per liter while gasoline prices have reached P50.

Companies have also warned of possible increases in the coming months due to the oil price's unpredictability in the international market.

"The LTFRB is left with no reason but to approve our petition. The petition [for fare hike] was filed last November," de Luna said, adding that the last fare increase was implemented five years ago, back when diesel prices were half lower.

If ever the LTFRB decides against the petition, he said the government should at least provide the transport sector a P3 subsidy for pump prices.

No E-VAT

On Monday, transport groups also urged government to provide gasoline subsidies and to lift the 12 per cent expanded valued-added tax (E-VAT) to help the industry cope with the continuous oil price hikes.

In a dialogue at the LTFRB main office in Quezon City, transport group leaders said the P1 discount given by gasoline companies to jeepneys is not enough to offset their losses from higher oil prices.

They also proposed revision of the Oil Deregulation Law, which would restore government's power to control oil prices.

Jeepney and bus operators also asked for a P2 subsidy per liter of petrol they buy.

LTFRB chairman Thompson Lantion agreed with the proposals but did not say whether the government could afford the subsidy.

Lantion said P2.7 billion would be needed to cover the costs of a P2 subsidy per liter.

Lantion also said that the price of petroleum products will be reviewed every three months.

The nod given by the LTFRB was warmly received by the transport groups.

Fare hikes

But while transport groups received the LTFRB's word warmly, they said that the proposed subsidy won't be enough.

They are also pushing for a fare hike of P1.50 for the first four kilometers, and P0.50 for the succeeding four kilometers.

The LTFRB said they will discuss the proposal on Tuesday, during which transport groups expect their petitions be approved.

Meanwhile, the National Food Authority (NFA) has also set up rice outlets in jeepney terminals to bring low-cost rice nearer to the drivers.

Earlier, Pilipinas Shell warned the public of more price increases in the coming weeks, adding that the worst case scenario would be that oil price adjustments would continue until July.

The Department of Energy summoned oil companies Monday to explain the successive rounds of oil price hikes. With reports from Zyann Ambrosio and Alvin Elchico, ABS-CBN News