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Oil firms oppose toll increase

High fuel prices seen with new SLEx rates

By Amy R. Remo
Philippine Daily Inquirer
First Posted 06:30:00 06/29/2010

Filed Under: Infrastructure, Road Transport, Oil & Gas - Downstream activities

MANILA, Philippines?Small oil players have joined militant groups and other sectors in opposing the 250-percent increase in toll fees at the South Luzon Expressway (SLEx), saying that the move could result in higher fuel prices.

Fernando Martinez, chair of the Independent Philippine Petroleum Companies Association (IPPCA), agreed with Albay Gov. Joey Salceda, who said the toll increase would hit not only motorists but also the general public using the expressway.

South Luzon Tollways Corp (SLTC), operator of the expressway, has deferred the implementation of the new toll rates from June 30, when President-elect Benigno ?Noynoy? Aquino III will take his oath, to July 7.

Rehabilitation cost

It is increasing the rates to recover the cost of rehabilitating the 27.3-kilometer Alabang-Calamba stretch and expanding the 1.2-kilometer Alabang viaduct.

Current toll at SLEx (Alabang-Calamba) is P22 for light vehicles, P43 for buses and P65 for heavy trucks.

A hefty increase will have an impact on the price of cargo being transported from Metro Manila to southern Luzon and vice versa, Martinez said.

Once the new toll fees take effect, the IPPCA said haulers would also jack up charges, forcing oil firms to raise the retail prices of diesel and gasoline in the affected areas.

EO suspension

Instead of forcing the public to cough up the amount to cover the toll rates, Martinez said it would be better for the government to suspend the implementation of Executive Order No. 890, which mandated a zero tariff on crude oil and finished products.

The implementation of the EO will result in P10 billion in revenue losses to the government. ?The amount is enough to pay-off the Malaysian investors in the said SLEx expansions,? Martinez said.

He explained that the combined collection of the 3 percent tariff that may amount to some P10 billion, plus the road tax of P7 billion?a total of P17 billion?would even be enough to make new 15-km expressways every year.



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