THE Land Transportation Franchising and Regulatory Board (LTFRB) said over the weekend it is considering ‘expanding and increasing’ the P10 per liter fuel discount for public utility vehicles (PUVs) as an alternative to raising fares, as fresh tensions in the Middle East drive a series of oil price hikes.
LTFRB Chairman Vigor D. Mendoza II said the proposal is being taken up alongside the review and recomputation of pending fare increase petitions ordered by Department of Transportation (DOTr) Secretary Giovanni Z. Lopez, with the agency now in talks with other government offices and transport stakeholders on what form of support to extend to the sector.
‘We are factoring everything in the conduct of review and recomputation and this includes the fact that it is difficult to do so because the situation in the Middle East remains unpredictable and unstable,’ Mendoza said.
The fuel discount currently covers passenger jeepneys and UV Express units, the modes that carry the bulk of daily commuters. More than 87,000 PUVs have availed themselves of the subsidy so far, while the number of units registered in the system has climbed past 143,000 – a gap that points to how much wider the program’s cost could run if enrollment catches up with eligibility.
‘Increasing and expanding the fuel discount is the most logical and practical measure in the middle of the uncertainty on the situation in the Middle East. This will be factored in the ongoing discussions,’ Mendoza said.
He acknowledged that expanding coverage and raising the per-liter rate would carry a substantial budget requirement.
‘We are looking into this proposal as the last option because the discussions on the matter are ongoing, and these discussions include public consultations with stakeholders nationwide,’ Mendoza said.
Mendoza earlier committed to issue a final resolution on pending fare increase petitions ‘in the soonest possible time.’ These include petitions from Piston, which lodged its plea about three months ago, is seeking a P10 increase in the minimum fare, and Manibela’s more recent petition of a P2 hike.