The Land Transportation Franchising and Regulatory Board (LTFRB) is analyzing potential interventions—including fare hikes and new fuel subsidies—to cushion the transport sector from the impact of surging fuel costs.
LTFRB Chairman Vigor Mendoza revealed that Transportation Secretary Banoy Lopez directed the board to explore these alternatives.
This directive comes in the wake of escalating global oil prices, triggered by heightened Middle East tensions following recent US military strikes in Iran.
“Inutusan na po kami ni [Transportation] Secretary Banoy [Lopez] kahapon po para i-compute na po anong klaseng subsidiya o pag-aralan na rin po yung pagtaas ng pamasahe kasi lahat na po umakyat na rin, pati minimum wage umakyat na po,” LTFRB Chairman Vigor Mendoza said.
Currently, the regulatory body is measuring the potential consequences of either approving fare adjustments or distributing further financial aid to transport operators.
“So we’re reviewing the impact of a fare increase to that decision o yung mga subsidiya na pwedeng ibigay,” he told in an radio interview with DZMM Radyo Patrol 630.
Presently, the government spends about ₱160 million monthly to sustain a fuel discount program, which provides a ₱10-per-liter discount to jeepney and UV Express drivers.
However, Mendoza pointed out that scaling this subsidy program to encompass all public utility vehicles (PUVs) would dramatically drive up state spending to an estimated ₱2.4 billion every month.
He also suggested that a fare increase would have a negligible impact on inflation, especially given the recent upward adjustment in the minimum wage.
When asked about the board’s preferred path, Mendoza indicated that the LTFRB is more inclined to endorse a fare hike rather than a massive subsidy expansion.
“Ang aming reco dito really would be to bite the bullet and increase fares.”
“Mas ang laki kasi ng ating subsidiya na ibibigay, ₱2.4 billion a month. We could do a lot more tricks with that money compared to increasing fares,” the official said.
“Tapos dapat lalahatin natin yung distribution, agad-agad, mabilis ang distribution, so that’s another factor we have to consider,” he said.
The LTFRB is expected to submit its final policy recommendation to the Department of Transportation by late Thursday or Friday once it concludes its evaluation.