GOVERNMENT AGENCIES are considering implementing a fare hike and providing cash assistance to the transport industry to offset the impact of higher oil price.
The Energy department’s Oil Industry Management Bureau (OIMB) Director Rino E. Abad said the department has met with the Land Transportation Franchising and Regulatory Board (LTFRB) to discuss a possible fare hike.
“Hinihintay nalang po natin sa kanila ay ‘yung kanilang eventual decision on how much or if there is a fare hike (We are waiting on the LTFRB’s eventual decision on whether there will be a fare hike and how much it will be),” Mr. Abad said during a Laging Handa briefing Tuesday.
The possible fare hike for public transportation will likely not be higher than P1.26 on the base fare, according to LTFRB estimates provided by Technical Division Head Joel de Jesus Bolano during the briefing.
“Kung walang fare hike or (kung) insufficient ang magiging fare hike, then kailangan suportahan natin with cash assistance (If there is no fare hike or if it is insufficient, then cash assistance is needed),” the OIMB’s Mr. Abad said.
Once finalized, the Department of Energy and LTFRB will bring the proposed fare hike and cash subsidy to the Finance and Budget departments, which will determine whether there are available funds.
“’Pag nagkaroon po iyan ng available fund, idederetso na po natin sa Kongreso para magawan ito ng batas (If funding is available, we will go straight to Congress to put it into a law),” Mr. Abad said during the briefing.
He cited a “fundamental insufficiency of crude oil supply in the international market” which led oil prices to rise.
“Meron po tayong projection from [S&P Global] Platts na ang kulang po ngayon ay umaabot po ng two to three million barrels of crude oil per day so iyan po ang sitwasyon kaya po ang ating price ay agarang nag-react ay ang reaction po niya ay pataas (The shortage is projected at 2-3 million barrels of crude per day by Platts, which is why prices are rising),” he said.
Domestic oil firms increased gasoline prices by P1.30 per liter (/L) this week. Meanwhile, diesel and kerosene prices were raised P1.50/L and P1.45/L, respectively.
Retail fuel prices have been increasing for seven consecutive weeks.
The Organization of the Petroleum Exporting Countries in a recent meeting with Russia agreed to stick to a plan to gradually increase oil output despite rising demand. — Angelica Y. Yang
