Jeepney group: Halt fuel tax or raise fare by P2
Jeepney drivers, now reeling from oil price aftershocks that have so far cut their take-home pay in half, are urging the government to either suspend the excise on fuel or grant a P2 increase in the minimum fare.
The transport group Manibela told the House of Representatives on Wednesday that it prefers the tax suspension to a fare increase, which should be the “last-resort” amid the expanding Middle East conflict.
“As much as possible we prefer a suspension of the excise taxes or the reduction of value-added taxes. So I hope there would be a sense of urgency over that matter so that our drivers can have a higher take-home pay,” Manibela chair Mar Valbuena said at the hearing called by the House transportation committee to discuss fuel subsidies.
On Tuesday, the House committee on ways and means passed a consolidated version of bills seeking to suspend the excise on petroleum products during emergencies, such as the Middle East conflict. The bill sets certain conditions for the suspension—such as the Dubai crude price exceeding $80 per barrel for at least three straight months and a corresponding increase in local fuel prices.
The Senate committee on ways and means, however, was still in the process of finalizing its version of the House bill, according to Sen. Pia Cayetano.
The excise on diesel is currently pegged at P6 per liter, and on gasoline at P10 per liter.
Economic Planning Undersecretary Rosemarie Edillon said on Monday that they have drawn up two scenarios in anticipation of the war’s effect on the local economy.
According to Edillon, Scenario 1 is premised on oil prices rising to $99.8 per barrel based on the Dubai Crude Oil Futures’ expectation, but with war ending soon.
Scenario 2 simulates what would happen if “Iran sustains the closure of the Strait of Hormuz,” which could lead to prices hitting $140 per barrel.
If Scenario 2 unfolds, the country may be looking at P96 per liter of diesel fuel, before any possible excise tax suspension, Edillon said.
“We also simulated the impact of excise tax suspensions. So supposing… we know that for regular gasoline it is P10 per liter, and then for diesel it’s P6 per liter. In this case, let’s say for diesel prices with excise tax suspensions [and] it will be this March: under Scenario 1, from P74.22 per liter it would go down to P67.50 per liter. And then for April: from P67.33 it could go down to P60.61,” Edillon said.
But the Department of Finance warned that the government may see a P136-billion drop in its 2026 revenues if the excise on petroleum products is removed.
If the fuel price increases continue, Manibela may request a P2 “basic fare hike,” Valbuena said.
But he acknowledged that any inflationary effect of the oil price hikes may render the drivers’ additional income practically worthless.
Also on Wednesday, Transportation Secretary Giovanni Lopez said the agency was close to making a decision on fare hike petitions.
“The Land Transportation Franchising and Regulatory Board submitted a recommendation to the DOTr. I returned it to them yesterday. I told them, ‘We have to recompute your numbers. We have to re-crunch your numbers,’” he told reporters in Malacañang.
Lopez said he expected LTFRB Chair Vigor Mendoza II to finish his revision of the board recommendation on the fare increase within the week. Once submitted and approved, it will be implemented by the DOTr at “the earliest,” he added.
At Wednesday’s House hearing, Valbuena said jeepney drivers lost half of their daily income—averaging P800—due to the massive fuel price increases on Tuesday alone.
“We have an average income loss of P400 to P500. That’s only for yesterday,’’ he said.
“Now, if the rise in prices of petroleum products continues, the amount that would be cut from our average income of P800 per day, generated from 12 hours to 14 hours of trips, would be bigger.”
Valbuena said the drivers’ losses were heavier compared to the effects of the Russian invasion of Ukraine in 2022.
“Because the oil price hike now is not normal, unlike during the Ukraine and Russia (conflict), the increases were done in tranches. But this move is sudden because oil prices rose on Tuesday, and by Wednesday and Thursday we saw gas stations selling diesel at P90 per liter. It even reached P105 per liter last Saturday,” he added.
Just good for 2 days
Diesel prices rose between P17.50 and P24.25 per liter, with oil companies staggering increases across two to seven tranches. Gasoline prices climbed to between P7 and P13 per liter starting Tuesday.
Kerosene, widely used for cooking, heating and aviation fuel blending, rose more sharply, increasing between P32 and P38.50 per liter.
In response to a question from Bulacan Rep. Agustina Pancho, Valbuena said the proposed fuel subsidy from the DOTr —P5,000 for traditional jeepneys and P10,000 for modernized units—may only tide drivers over for day or two.
“(T)hat would not be enough (and) used up in two days if we swipe that card at the gas stations, but it will help us even for a bit. And I heard from my seatmates, the reason why there would be a higher subsidy for modern (jeepneys) is because they are paying (for the vehicle) on an installment basis. That’s why this will be a big help for them,” Valbuena said.
A separate cash assistance of P5,000 will be given to PUV drivers, starting with tricycle drivers in Metro Manila, on March 17 to help cushion the impact of fuel price increases, Social Welfare Secretary Rex Gatchalian said.
A total of P30 billion out of P60 billion in the 2026 budget of the Department of Social Welfare and Development’s Assistance to Individuals in Crisis Situations program was earmarked for the subsidies, according to Gatchalian. —WITH REPORTS FROM KEITH CLORES AND DIANNE SAMPANG
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