Despite the continued increase in fuel prices, the government is not inclined to grant the petition of public utility drivers for a P1 hike in transport fares.
Undersecretary Rose Edillon of the National Economic and Development Authority (Neda) on Monday told a hearing of the House of Representatives that raising transport fares could lead to a “bigger inflationary risk” once it snowballs into wage hike petitions.
She said Neda would propose instead a balance of “reasonable” fare adjustment plus subsidies from the national government during today’s (Tuesday) hearing by the Land Transportation Franchising and Regulatory Board on the fare hike petition of transport groups.
On Monday, oil companies announced the biggest increase in pump prices of petroleum products so far this year: P5.85 for a liter of diesel, P4.10 for kerosene and P3.60 for gasoline. These will take effect today.
Since January this year, the unabated weekly increase has raised diesel prices by P17.50 a liter and gasoline by P13.25. In 2021, gasoline prices rose by P16.30 a liter and diesel by P15.80.
The volatile movement of the oil market has already fanned fears of an energy crisis, which could affect not only the prices of local petroleum products but also that of electricity, food and transport.
The recent spikes in oil prices have been due to the impact of Russia’s invasion of neighboring Ukraine on an already tight global crude supply. (©Philippine Daily Inquirer 2022 /Ben O. de Vera)
