The Land Transportation Franchising and Regulatory Board (LTFRB) has declined the suggested P1 “surge fee” put forth by certain transportation associations as a response to the increasing fuel costs.
In lieu of this, the government’s regulatory agency has revealed its intention to distribute a fuel subsidy amounting to P2.9 billion to drivers of public utility vehicles (PUVs) in the near future.
“I think it’s too high. Even P1 for me is a little bit too high. Masyadong masakit sa bulsa ng mananakay,” said LTFRB Chairperson Teofilo Guadiz III.
As per Guadiz’s statement, the previous petition has become null and void due to the submission of a fresh petition seeking a P2 fare hike for various modes of public transportation in light of escalating fuel expenses.
The Department of Energy (DOE) has confirmed another price surge scheduled for Tuesday, August 15th — marking the third increase in prices this month. This adjustment is attributed to the concerted efforts of Saudi Arabia and Russia to curtail output targets.
Diesel prices are set to rise by P1.50 per liter, gasoline will increase by P1.90 per liter, and kerosene prices will climb by P2.50 per liter.
LTFRB rejects P1 surge fee proposed by transportation groups
“Ngayon naman pinag-uusapan is around P1.5 [per liter price increase on diesel], so most likely nasa $90 [per barrel] na po tayo, $80, higher level ng $80, $87, $88 posible pong umabot tayo niyan,” said DOE Oil Management Industry Bureau Director Rino Abad.
The LTFRB has announced its intention to allocate a minimum of P2.9 billion in fuel subsidy, also referred to as “ayuda,” to support public utility vehicle (PUV) drivers who are affected by the surging prices. They are currently awaiting the budget disbursement from the Department of Budget and Management.
“We’re hoping that by either Friday o Monday lumabas na ‘yung pera [the budget will be downloaded],” said Guadiz.
“Depende kung sa klase ng pampublikong sasakyan ang halaga ng matatanggap na ayuda… pero hindi raw kasama ang mga motorcycle taxi,” he said.
The provided assistance will span from P1,000 to P10,000.
PISTON, a transport organization, believes that the ultimate resolution to the escalating fuel costs lies in abolishing the oil deregulation law. A pertinent bill addressing this matter has already been introduced in Congress.
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