MANILA, Philippines—The government is set to announce next week new provisional rates for public jeepneys and buses nationwide following a steady rise in fuel prices.
The Land Transportation Franchising and Regulatory Board (LTFRB) was initially expected to announce a hike in jeepney fares—expected at around 50 centavos per passenger—on Friday but postponed it to next week.
“We decided to just make the announcement together with the release of the provisional increase for bus companies,” an LTFRB official who refused to be identified by name said on Friday.
“The board has already approved the new rates, but the approval of the secretary is still needed,” the official said, referring to Transportation and Communications Secretary Manuel “Mar” Roxas II.
Transport groups representing jeepney drivers and operators nationwide earlier threatened to go on strike if fare hikes were withheld by the government.
Meanwhile, bus companies that applied for fare increases belonged to the Integrated Metro Bus Operators Association (Imboa), which represents Metro Manila buses; and the Southern Luzon Bus Operators Association and Provincial Bus Operators Association, representing buses outside the metropolis.
Petitions for an increase in bus fares were filed last year but the LTFRB refused to act on them.
The increases to be approved would be classified as “provisional,” the LTFRB said. Provisional increases can easily be withdrawn by the LTFRB if and when fuel prices decline.
The latest report from the Department of Energy (DoE) showed that prices of diesel fuel (at about P48 per liter) and gasoline (at P57 per liter) are currently at their highest levels in nine months.
“Oil prices significantly increased amid fears of possible supply disruption that may be brought by the lingering tensions over Iran’s nuclear program,” the DoE said.
“It was further boosted during the week by the Iranian state-run reports about a Saudi pipeline explosion and fire in the eastern Saudi city of Awamiyah. Saudi Arabian officials however denied the incident,” it said.