Expanded Fuel Subsidy Could Cost Gov't Over P5 Billion Monthly

The Land Transportation Franchising and Regulatory Board (LTFRB) estimates that expanding the fuel subsidy program for public utility vehicle (PUV) operators to prevent a fare hike could cost the government between P4 billion and P5 billion monthly. In an interview on "Unang Balita" on Friday, LTFRB Chairman Vigor Mendoza II stated that several options have been presented to Malacañang. The most comprehensive proposal involves covering all modes of public transportation and increasing the discount from P10 to P20 per liter, while potentially adjusting the number of discounted liters. "For that broadest coverage option, the cost will reach around ₱4 billion to ₱5 billion a month… Yes, it is quite significant," Mendoza said. Department of Transportation (DOTr) chief Giovanni Lopez had previously proposed to expand the current fuel subsidy, which offers a P10-per-liter discount for up to 150 liters. The agency is studying whether to raise the discount to P15 or P20 per liter or increase the weekly liter limit. The LTFRB hopes to resolve the proposed expansion during their meeting with Malacañang on Friday. Meanwhile, following recent significant fuel price hikes, several transport groups have called for an increase in the minimum fare for PUVs. Mendoza noted that requested fare increases vary, with Piston asking for P10, Manibela for P5, and another group proposing P2. "The requested increases vary quite a bit, so we will allow each group to present their evidence on Monday," Mendoza said. The LTFRB chairman explained that the agency will conduct hearings alongside other government bodies to rule on these petitions. They must balance the needs of transport operators with passengers' financial capacity, especially considering the suspension of the minimum wage hike implementation. Among the agencies participating in the LTFRB hearings is the Department of Economy, Planning, and Development (DepDev), which is set to present data regarding the inflationary impact of each fare petition. Mendoza indicated that due to the number of agencies involved, the LTFRB may require two to three additional sessions beyond the initial hearing on Monday, August 3. A final decision on the matter could take until the end of August if hearings are held weekly. Information Source: GMA News Philippines