No end in sight for transport woes

The Philippine Statistics Authority recently reported that headline inflation rose to 7.2 percent in September 2026. That is up from 6.1 percent last August and 1.7 percent in September 2025, and it is the highest rate since March 2023. Within that figure, one group stands out: transport.

Transport inflation reached 14.6 percent last month, up from 13.5 percent in August. No other commodity group came close. Food and non-alcoholic beverages rose to 6.7 percent from 4.6 percent in August while housing, water, electricity, gas and other fuels increased to 8.4 percent from 7.9 percent.

This is not surprising though. Transport inflation has been in double digits for most of the year. It reached 16.2 percent in May as the oil shock from the Iran war peaked then eased to 12.8 percent in June and 11.9 percent in July after the April ceasefire brought fuel prices down. It then climbed to 13.5 percent in August and 14.6 percent in September, after fighting resumed and the Strait of Hormuz was closed a second time.

The pattern tracks the price of oil. Transport costs include pump prices for private vehicles, public transport fares and the freight costs built into almost everything else. All three depend on diesel and gasoline.

The effect spreads well beyond the transport group. Food prices carry the cost of trucking produce from farms to markets and of fuel for fishing boats. In September, 11 of the 13 commodity groups in the consumer price index recorded faster price increases than in August.

The burden is heaviest at the bottom. For the poorest 30 percent of households, inflation reached nine percent in September, up from 8.2 percent in August. These households spend a larger share of their income on food and fares, and they have the least room to absorb increases.

The Bangko Sentral ng Pilipinas has responded by raising its policy rate three times since April, to five percent in August. Interest rates can slow demand, but they cannot lower the price of imported oil. As long as the supply disruption continues, transport will remain the main driver of Philippine inflation.

Accusation versus evidence

Sen. Panfilo Lacson has been relentlessly pursuing alleged irregularities in Taguig City.

Last August, Lacson said that his investigation into Taguig projects uncovered “a cauldron of worms,” including illegal reclamation activities in Laguna Lake. He claimed that these activities, which he linked to the Cayetanos, had been carried out for years under the guise of flood control and mitigation projects.

His office had reportedly identified 32 allegedly anomalous flood control projects in Taguig City since he started his probe.

One newspaper report claimed that Lacson’s probe into Taguig’s infrastructure project was triggered by Sen. Alan Peter Cayetano’s allegation on Facebook that his net worth had increased twofold. Lacson denied Cayetano’s claim.

Cayetano likewise denied all the allegations made by Lacson and maintained that Taguig had no ghost projects.

Media also reported that Lacson released a video about the inspection carried out by the Ombudsman, the Philippine Reclamation Authority (PRA), and the Department of Public Works and Highways on the alleged illegal reclamation and pinned the responsibility on the Taguig government. But the city fired back and said that the land in the video does not belong to it and that it did not issue any permit to the private individuals mentioned.

Lacson alleged non-existent flood control projects, questionable billing photographs and possible duplicate appropriations in Taguig. But in a Senate budget hearing last month, Public Works Secretary Vince Dizon said that the DPWH had not found a single ghost project in Taguig at that stage. He later clarified that his remark applied only to 10 nationwide conclusive ghost projects.

Undersecretary Ricardo Bernabe III, meanwhile, reported that 107 identified projects had recorded accomplishments.

The findings did not certify every project as irregularity-free, but unfortunately, neither did they substantiate the sweeping impression that Taguig was littered with ghost infrastructure.

Then came the second whammy this time regarding the allegedly illegal reclamation along Laguna de Bay. The PRA reported that about 30 hectares of reclamation involving seven lots had bypassed its regulatory processes. Lacson also linked roughly P3.7 billion in infrastructure expenditures to questioned areas. These findings warrant serious examination, but they do not automatically establish that the entire amount was illegally spent or that Cayetano personally authorized unlawful activities.

Then there was the supposedly fraudulently titled land. Lacson identified four parcels totalling 38.83 hectares which he described as fraudulently titled, along with others lots allegedly lacking corresponding plotted records at the Land Registration Authority. However, during a Senate hearing, PRA chairman Alexander Lopez clarified that his agency had not declared the questioned titles as fake. A disputed title is not necessarily a forged title and a possible defect in land registration is not proof that a particular official committed fraud. Lacson has not explained what Cayetano or Taguig have to do with these alleged fake titles.

Cayetano has accused Lacson of selective scrutiny and politically motivated allegations. He said that Lacson is carrying out a demolition job, a trial by publicity, and a witch hunt in Taguig City. “I have no problem being accused. I am a public official. But he is linking all the projects to Taguig and to me, all the titles there. It’s not only unfair, but it’s just plain wrong,” Cayetano said.

If Taguig and the Cayetanos are guilty, Lacson must present evidence and let the wheels of justice work. Same for Cayetano’s allegations that Lacson’s net worth increased to P244.94 million in 2025 from P58.77 million in 2022.

Accusations will remain as accusations until proven.

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