Better than fare hike? LTFRB eyes expansion, increase of fuel discount for PUVs
The Land Transportation Franchising and Regulatory Board (LTFRB) appears to be leaning towards sustaining and expanding fuel discount instead of fare increase, citing the unstable security situation in the Middle East as the reason.
LTFRB chairman Vigor D. Mendoza II said the fuel discount as an alternative to fare hike was proposed in some of its meetings with government agencies and stakeholders, saying the unpredictable situation in the Middle East is making it hard to decide on the appropriate fare hike.
It was recalled that air strikes continue despite repeated ceasefire agreements between the United States and Iran.
“We are factoring everything in the conduct of review and this includes the fact that it is difficult to do so because the situation in the Middle East remains unpredictable and unstable,” said Mendoza.
“Increasing and expanding the fuel discount is the most logical and practical measure in the middle of the uncertainty on the situation in the Middle East. This will be discussed in the ongoing discussions,” he added.
Earlier, the LTFRB announced that it would recompute an appropriate fare increase after transport groups sent a letter to President Marcos urging the implementation of the after fare hike that was deferred in March.
In March, the LTFRB approved a fare increase but this was set aside by Marcos who said any fare hike is not timely since it was the height of the armed conflict in the Middle East.
Amid the discussions, there were proposals that the ongoing fuel discount be expanded and increased instead in order to cover the additional operational costs that the public utility vehicle (PUV) sector has been raising.
Currently, the P10 per liter fuel discount covers passenger jeepneys and UV Express, the most common modes of transportation being used by Filipino commuters on their way to workplaces and back to their homes.
More than 87,000 PUVs already benefited from the P10 per liter fuel discount and as of latest data, the number of PUVs listed in the system already reached more than 143,000.
“We are looking into this proposal as the last option because the discussions on the matter are ongoing, and these discussions include public consultations with stakeholders nationwide,” said Chairman Vigor.
While arguments raised by the supporters of fuel discount that it will not hurt the commuters and public because of the concerns on the inflation effects of any fare hike, Chairman Vigor said increasing the fuel discount and expanding it to cover as many PUVs would entail huge budgets.