LTFRB junks P1 surge fee, eyes P2.9-billion subsidy for PUV drivers

The Land Transportation Franchising and Regulatory Board (LTFRB) has rejected the proposed P1 “surge fee” proposed by some transportation groups to address the rising fuel prices.

Instead, the government regulatory body announced it would soon disburse P2.9 billion worth of fuel subsidy to public utility vehicle (PUV) drivers.

“I think it’s too high. Even P1 for me is a little bit too high. Masyadong masakit sa bulsa ng mananakay,” said LTFRB Chairperson Teofilo Guadiz III in Joseph Morong’s report on “24 Oras” on Monday.

(I think it’s too high. Even P1 for me is a little bit too high. That would badly affect commuters.)

According to Guadiz, the petition is now void after a new petition was filed asking for a P2 increase in fares across different modes of public transportation amid the rising fuel costs.

The Department of Energy (DOE) said another price hike will be imposed on Tuesday, August 15 — the third price increase this month — which it attributed to Saudi Arabia and Russia’s commitment to reduce output targets.

Diesel prices will be up by P1.50 per liter; gasoline by P1.90 per liter; and kerosene by P2.50 per liter.

“Ngayon naman pinag-uusapan is around P1.5 [per liter price increase on diesel], so most likely nasa $90 [per barrel] na po tayo, $80, higher level ng $80, $87, $88 posible pong umabot tayo niyan,” said DOE Oil Management Industry Bureau Director Rino Abad.

(Based on our discussions, it would be around P1.5 [price increase on diesel per liter], so most likely it would be around $80 to $90 [per barrel]. Higher levels would be $80, $87. It may reach $88.)

The LTFRB said it will disburse at least P2.9 billion worth of fuel subsidy or “ayuda” to public utility vehicles (PUV) drivers hit by the increasing prices. They are still waiting for the Department of Budget and Management to download the budget to them.

“We’re hoping that by either Friday o Monday lumabas na ‘yung pera [the budget will be downloaded],” said Guadiz.

“Depende kung sa klase ng pampublikong sasakyan ang halaga ng matatanggap na ayuda... pero hindi raw kasama ang mga motorcycle taxi,” he said.

(The amount would depend on the PUV but motorcycle taxis are excluded.)

The subsidy will range from P1,000 to P10,000.

For transport group PISTON, the long-term solution for the rising fuel prices is the junking of the oil deregulation law. A related bill has been filed in the Congress.

“‘Pag tinanggal yung P6 sa excise tax maibababalik sa driver ‘yung P6. Babawi yun,” said PISTON President Mody Floranda.

(If they would remove the P6 excise tax, that would bounce back to the drivers.)

But doing so would affect the transport subsidy, Guadiz said.

“It may either decrease or totally eliminate the fuel subsidy,” he added.—Sundy Locus/LDF/KG, GMA Integrated News