By Chloe Mari A. Hufana, Reporter
PHILIPPINE President Ferdinand R. Marcos, Jr. on Wednesday suspended the fare increase for public utility vehicles (PUVs), a day before its implementation.
In a video message, Mr. Marcos said he directed the Department of Transportation (DoTr) to defer the hike scheduled for Thursday, adding that now shouldn’t be the precise time to lift fares despite soaring pump prices.
“This may occasionally not be the precise time to extend fares for our fellow residents,” he said in Filipino.
The Department of Transportation (DoTr) said it has deferred the implementation of PUV fare adjustments to assist ease the burden on commuters.
Transportation Acting Secretary Giovanni Z. Lopez said the agency is exploring other programs and initiatives to support drivers and commuters, similar to free rides and the expansion of fuel voucher distribution.
The Land Transportation Franchising and Regulatory Board on Tuesday approved fare increases for PUVs, reflecting the spike in fuel, maintenance and operating expenses because the Iran war began. It covered jeepneys, provincial and city buses, airport taxis, and transportation network vehicle services.
Mr. Marcos assured transport employees that the federal government will ramp up support because it began its money relief distribution for tricycle drivers within the capital region on March 17.
Other PUV employees are scheduled to receive aid in the approaching weeks.
“Transport employees mustn’t worry; we’ll expedite and increase support for you so that you simply won’t be burdened an excessive amount of,” Mr. Marcos added.
The DoTr said it’s expediting the discharge of fuel subsidies for qualified PUV drivers and operators as additional assistance.
Mr. Lopez said the DoTr can also be coordinating with toll operators for the opportunity of offering discounts to motorists.
BusinessWorld sought comments from toll operators Metro Pacific Tollways Corp. and San Miguel Corp. but had not received a response as of deadline.
Meanwhile, transport group Manibela is ready to stage a transport strike to protest the federal government’s suspension of fare adjustments, stressing that this move further burdens drivers already reeling from high pump prices.
“The federal government must have thought things through before suspending the rise, this may add one other burden to our drivers and operators,” Manibela Chairman Mar S. Valbuena told BusinessWorld on Wednesday.
Mr. Valbuena also noted the approved fare increase was not enough to compensate drivers as fuel expenditure accounts for nearly all of drivers’ day by day earnings.
The DoTr also clarified that the suspension order applies only to fare adjustments for land transport. The upper fuel surcharge for airlines from April 1-15 stays in effect, together with Maritime Industry Authority’s authorization for ship operators to gather as much as 20% of base fares as a fuel surcharge.
MRT, LRT FARE DISCOUNTS
The President said the operators of the Metro Rail Transit (MRT) and Light Rail Transit (LRT) may even give fare discounts.
“Even when there’s a significant disruption happening, it would only be felt a bit, or we will do it, hopefully, our people will feel nothing of their day by day work, amongst our students who come to highschool each day,” he added.
Benjamin B. Velasco, an assistant professor on the University of the Philippines School of Labor and Industrial Relations, said the federal government’s reversal on the fare hike highlights an absence of clear policy coordination, sending mixed signals amid a fuel and cost-of-living crisis.
“Even when the fare hike was suspended, the demand for a wage hike is not going to be muted since prices of other basic necessities — like food and electricity — are rising still,” he said via Facebook Messenger.
“If the prices of living are increasing, then why are wages not being adjusted too? It behooves the federal government to also call for a tripartite industrial summit to tackle this concern,” he added.
Mr. Velasco advisable a transport summit to debate measures similar to service contracting and “libreng sakay,” ensuring no operator or employee is unfairly disadvantaged.
NO EMERGENCY POWERS FOR NOW
Also on Wednesday, Mr. Marcos said he’s uncertain when or whether he’ll use the proposed emergency powers to chop fuel excise taxes despite certifying the measure as urgent.
The possible move on fuel excise taxes is contingent on global price movements amid uncertainties from the escalating conflict, he said, noting there are numerous things to contemplate.
Each chambers of Congress have already passed separate measures allowing the President to chop or halt the excise tax on fuel under certain conditions.
“That depends. That’s a really complicated calculation,” he told reporters during a market visit in San Juan City. “When the situation calls for it, then we’ll see when to exercise that power and by how much.”
Based on Mr. Marcos, the country has enough supply of oil and food, urging Filipinos to not hoard as “all the pieces is normal.”
Fuel prices spiked on Tuesday, March 17, with gasoline rising by P12.90 to P16.60 per liter, diesel by P20.40 to P23.90 and kerosene by P6.90 to P8.90.
Monitoring by the Department of Energy showed pump prices could climb as high as P91.60 per liter for gasoline, P114.90 for diesel and P143.79 for kerosene.
“Right away, we don’t have an issue with the provision of food, and we don’t have an issue with the provision of petroleum products, including fertilizer for farmers,” Mr. Marcos said in mixed English and Filipino.
Analysts said suspending fuel excise taxes offers limited relief amid global oil volatility, with domestic prices still driven by import costs and Middle East supply disruptions.
Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., noted that while excise tax cuts provide immediate relief, they’re a blunt tool.
“A greater approach is targeted support for transport, agriculture, and power, while accelerating fuel diversification,” he said via Viber.
Foundation for Economic Freedom President Calixto V. Chikiamco said that the impact of the suspension could be modest — roughly P10 per liter for gasoline and P6 for diesel.
“It could also reduce much-needed government revenue, which could have funded additional schools or infrastructure,” he said via Viber.
Each analysts cautioned that tax relief alone is not going to stabilize oil prices or shield consumers from broader cost-of-living pressures.
On March 17, Finance Secretary Frederick D. Go said it’s premature to push for a fuel excise tax cut, as the federal government continues to be assessing the impact of the continued conflict and oil price movements.
As an alternative of an instantaneous tax cut, economic managers are prioritizing alternative relief measures, including boosting fuel buffer stocks, rolling out targeted subsidies for transport and vulnerable sectors and coordinating with oil firms to administer price increases.
The Senate approved on third and final reading a bill granting Mr. Marcos the authority to suspend or reduce fuel excise taxes to cushion the impact of rising oil prices.
The measure allows the President to act when the Mean of Platts Singapore crude benchmark averages at the very least $80 per barrel for a month prior to the order.
The proposal differs from the version passed by the House of Representatives, which requires the declaration of a national emergency or calamity before tax relief will be implemented.
Lawmakers within the House also included additional conditions for the automated suspension or reduction of excise taxes. — with Ashley Erika O. Jose