The LTFRB is poised to hike jeepney fares soon – it’s just a matter of when and by how much, to avoid causing a spike in inflation
The subsidies are only meant to cover the difference in the usual price of crude oil and its current elevated price, which LTFRB Chairman Teofilo Guadiz III estimated has risen from P51 to P71. The fuel assistance should last operators and drivers about 30 days.
However, it’s possible that some operators may not have received their subsidies yet. Guadiz clarified that so far, only 25,000 of the beneficiaries that they handle have had their Landbank accounts credited. The agency has also endorsed a list of 50,000 beneficiaries, who are spread across Metro Manila and regional offices.For 2024, the Department of Transportation will have a budget of P2.5 billion for its fuel subsidy program, although this is still being deliberated by Congress.
The LTFRB chairman said multiple transport groups have submitted fare hike petitions, although their requested amounts differ. The agency will hold an initial hearing on September 26 to consolidate the petitions. After that, the LTFRB will forward its findings to the National Economic and Development Authority to study when and by how much to hike fares to limit the inflationary effect on the economy. Because of this, Guadiz said he could not commit to a specific timeline for the fare hike, but gave a rough estimate of 30 to 35 days.
To help drivers and operators cope with fuel prices in the meantime, the LTFRB might impose a more immediate P1 provisional fare increase after its September 26 hearing.