DOTr opposes fare hikes amid soaring oil prices

MANILA, Philippines — The transportation department is against the proposal to raise the minimum fare in public transportation despite the successive increases in the prices of oil products.

Transportation Secretary Arthur Tugade said raising the minimum fare would affect inflation or the rate by which the level of prices of goods and services is increasing.

"The position of the Department of Transportation is not to raise fares because of the impact of the fare hike...on what we call the inflation rate," Tugade said during a meeting with President Duterte and some Cabinet members last Tuesday.

"Our position is do not raise fares. Accept the aid, use the subsidy. That's why we have a fuel subsidy," he added, referring to the government's financial aid for transport workers.

Socioeconomic Planning Secretary Karl Chua said inflation would rise by 0.4 percentage points if the minimum jeepney fair increases by P1.25. Such an adjustment would raise the inflation to 4.1% from the 3.7% projected by the central bank, he added.  

"That means, for example, if you spent P100 last year, this year, your expenditure will be P104," Chua said.  

The proposed fare hike, Chua added, would also affect those who do not use public transportation.

"The jeepney and buses may benefit (from the fare hike) but those who are using bicycles, those who are walking to their offices or to their schools, they do not pay fares but they will also be affected. That is one of the consequences of a spiraling inflation," the socioeconomic planning secretary said.  

The minimum fare for public utility vehicles is at P9. Various transport groups have filed petitions seeking an upward adjustment to the minimum fare, citing the rising oil prices caused by the conflict between Ukraine and Russia. The Land Transportation Franchising and Regulatory Board is scheduled to conduct a hearing on fare hike petitions on March 22.

Last week, the budget department released P3 billion to implement fuel subsidy and fuel discount programs designed to provide relief to sectors hit by the soaring oil prices.

Under the transportation department's fuel subsidy program, financial aid worth P6,500 will be directly provided to affected qualified drivers of jeepney, UV express, mini buses, buses, shuttle services, taxis, tricycles, and other full-time ride-hailing and delivery services nationwide. More than 377,000 drivers are expected to benefit from the program.

The agriculture department's fuel discount program aims to help farmers and fisherfolk who own agricultural or fishery machinery, either individually or through organizations. Beneficiaries of the program can claim up to P3,000 fuel discount.