Expanded fuel subsidy could cost gov't up to P5B monthly —LTFRB

The Land Transportation Franchising and Regulatory Board (LTFRB) estimated that expanding the fuel subsidy program for public utility vehicle (PUV) operators to avoid a fare hike would cost the government P4 billion to P5 billion monthly if approved.

In an interview on Unang Balita on Friday, the LTFRB said that it has presented several options to Malacañang, with the most comprehensive proposal—covering all modes of public transportation—being an additional P20 discount on top of the current fuel subsidy.

“Maraming options tayong ipinresenta sa Malacañang pero ‘yung pinakamalawak na suggestion po is, sakop po ang lahat ng modes of transport, i-decrease po natin ‘yung number of liters na bibigyan ng discount at i-increase din po natin ‘yung from P10 to P20 additional discount,” LTFRB chairman Vigor Mendoza II said.

(We presented several options to Malacañang, but the most comprehensive proposal covers all modes of transport. Under this plan, we would decrease the number of liters eligible for a discount while adding a P10 to P20 discount.)

“Doon sa pinakamalawak na sakop, aabutin po ng mga four to five billion [pesos] a month… Opo, medyo kalakihan po,” he added.

(For that broadest coverage option, the cost will reach around ₱4 billion to ₱5 billion a month… Yes, it is quite significant.)

Department of Transportation (DOTr) chief Giovanni Lopez proposed last Wednesday to expand the current fuel subsidy—a P10-per-liter discount for up to 150 liters. He added that the agency is studying whether to raise the discount to P15 or P20 per liter or increase the weekly liter limit.

Mendoza said they hope to resolve the proposed expansion during their meeting with Malacañang on Friday, July 31.

Fare hike petitions

Following the recent big-time fuel price hike, several transport groups have called for an increase in the minimum fare for PUVs.

According to Mendoza, the requested fare increases vary by group: Piston asked for P10, Manibela requested P5, and another group proposed P2.

“Medyo malalayo po ang mga hinihingi kaya bibigyan natin ng pagkakataon ang bawat isa na magpresinta ng kanilang ebidensya sa Lunes po ‘yan,” Mendoza said.

(The requested increases vary quite a bit, so we will allow each group to present their evidence on Monday.)

To rule on the petitions, the LTFRB chairman said the agency will conduct hearings alongside other government bodies. He noted they must balance the needs of transport operators with passengers' financial capacity, especially in light of the suspended minimum wage hike implementation.

“One factor nga diyan, yung pagsuspinde ng implementasyon ng minimum wage,” Medoza said.

(One key factor there is the suspension of the minimum wage hike implementation.)

According to Mendoza, among the agencies participating in the LTFRB hearings is the Department of Economy, Planning, and Development (DepDev), which is set to present data regarding the inflationary impact of each fare petition.

Mendoza said that beyond the upcoming hearing on Monday, August 3, the LTFRB may need two to three additional sessions due to the number of agencies being summoned.

If held weekly, a final decision on the matter may take until the end of August, Mendoza said. —Lyjah Tiffany Bonzo/LDF, GMA News