DoE chief Garin says pump prices unlikely to go down soon

Fuel prices are unlikely to go down anytime soon despite the recent decline in crude prices in the global market, the Energy chief said.

At the same time, a group of jeepney drivers is planning to seek a PHP 5 provisional fare increase from the regulator next week as soaring pump prices put a strain on their daily operations.

“On our calculations, on average, it’s still not going down as we hoped, but at least the market has calmed down slightly. But this war is very erratic. We don’t know what’s going to happen. Nobody knows,” Energy Secretary Sharon S. Garin told One News’ The Big Story on Wednesday evening.

Ms. Garin said the Department of Energy (DoE) is monitoring fuel prices as adjustments will only be determined after Friday’s trading in the global market.

“Hopefully, something better will happen, and the prices will stay down and hopefully go down,” she said.

Oil prices dropped by more than 11% on Tuesday, the steepest decline of any session since 2022, Reuters reported.

As a net oil importer, the Philippines is particularly vulnerable to fluctuations in global oil supply and prices.

President Ferdinand R. Marcos, Jr. earlier said the Philippines is exploring alternative oil suppliers to ensure stable fuel supply.

“Actually, there are offers already… So, hopefully we lock in some already to make sure that we have deliveries by April,” Ms. Garin said.

This week, the Philippines had its largest single-week adjustment, as pump prices rose as much as PHP 38.50 per liter.

“We are going to file a petition on Monday at the LTFRB (Land Transportation Franchising and Regulatory Board) for a PHP 5 provisional fare increase,” Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide (PISTON) President Mody T. Floranda told BusinessWorld on Thursday.

He said the provisional fare hike is intended to ease the strain of rising fuel costs on jeepney operators, adding that the PHP 5 adjustment still falls short of covering losses from volatile fuel prices.

Earlier this week, other transport groups like Manibela have also said that they have requested a PHP 2 fare hike, citing fuel price increases.

PISTON’s Mr. Floranda said that since last week, the estimated loss of income for drivers is around PHP 1,000 per day, while the daily expenditure of drivers for fuel has doubled. 

“But the fare hike is only one option, there are other options that the government can explore. We highly favor the suspension of the excise tax. If the government considers that then maybe we will withdraw our petition,” Mr. Floranda said.

Transportation Acting Secretary Giovanni Z. Lopez said in a statement that there will be a fare increase for public utility vehicles (PUV), but did not give details.

“Hopefully, the LTFRB will finish the review of fare hike petitions. We have to treat this very carefully with abundance of caution,” he said.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the proposed PHP 5 fare increase would disproportionately affect low- and middle-income households who allocate a larger share of income to transport.

“Higher commuting costs could force households to reduce spending on other goods and services, potentially slowing consumption in the short term,” Mr. Rivera said in a Viber message.

Targeted transport assistance may be needed to support operators’ viability while also prioritizing household welfare, he said.

“LTFRB already has a time-tested methodology on fare adjustments due to fuel price and other increases — they can dig into their past experience in coming up with the best decision that is fair to all,” Nigel Paul C. Villarete, a senior adviser on public-private partnerships at the technical advisory group Libra Konsult, said in a Viber message.

Rene S. Santiago, an international consultant on transport development and former president of the Transportation Science Society of the Philippines, said the proposed fare hikes are long overdue.

“Delays have weakened public transport, aside from the government losing elbow room to stagger fare increases with a jump in fuel prices. Fuel subsidy is a pittance and benefits only urban-based public transport,” Mr. Santiago said.

Meanwhile, Mr. Lopez said starting March 17, the government will begin disbursing a P5,000 fuel subsidy to PUV drivers in Metro Manila. He said the Department of Transportation (DoTr) has also asked toll operators to provide discounts to buses and trucks.

NLEX Corp. President and General Manager Luis S. Reñon told reporters on Wednesday that the company is in talks with DoTr to provide rebates to haulers and truckers. — Ashley Erika O. Jose and Sheldeen Joy Talavera, Reporters