Palace: Fare hike a ‘last resort’ despite rising fuel prices

MANILA, Philippines — President Marcos is still not keen to lift the suspension he imposed on fare hikes that were supposed to take effect in March, with a Palace official calling it a “last resort” even as fuel prices rose for a third straight week due to renewed tensions in the Middle East.

“We are still pushing the government to explore what else can be done to help transport operators and drivers so that the burden will not be passed on to commuters,” Palace press officer Claire Castro said on Tuesday, quoting a statement by Transport Secretary Giovanni Lopez.

“If there is to be a fare increase, we hope this will be our last resort. The Department of Transportation’s (DOTr) initiatives to ease the impact of rising fuel prices are continuing, such as fuel discounts and free toll for buses,” she added.

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Castro’s statements followed transport group Piston’s announcement that it would hold a nationwide strike from Sept. 29 to Sept. 30 to protest rising fuel prices.

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READ: DOE: No March-like fuel price spikes, but no pre-war levels either

“Sept. 29 because we will hold it simultaneously with yet another increase, this time by more than P10,” Piston national president Mody Floranda told the Inquirer.

Floranda said around 70,000 to 100,000 jeepney drivers and operators in Bulacan, Pampanga, Baguio, Rizal, Naga City and Sorsogon are expected to join the mass action.

Meanwhile, prices of petroleum products may drop by about P8 per liter next week as Saudi Arabia boosted oil exports.

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Saudi Arabia’s move

At a media briefing, Rino Abad, Department of Energy-Oil Industry Management Bureau director, said initial trading data had shown cooling global oil prices following the loading of “massive crude oil” supply.

The release of about 14 million barrels could help “stabilize” supply issues, he added.

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“There’s a trend of declining price … mainly because of this report that Saudi has actually reinforced the crude oil supply,” he told reporters.

“This is a forward and an aggressive approach of Saudi Arabia in front of the still existing conflict in the Strait of Hormuz. I think Saudi is sending the message that it will continue the supply to its customers,” Abad said.

Estimates from an industry source showed that as of Sept. 21 trading results, diesel prices could drop by P7.98 per liter and gasoline by 86 centavos.

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Oil firms imposed hefty hikes this week: P8.82 per liter for diesel, P4.88 for gasoline, and P6.47 for kerosene. /cb