Gov't to review PUV fare hike, subsidies amid oil price surge

MANILA, Philippines – The government is studying the possibility of lifting the suspension on the fare hike on public utility vehicles (PUVs) and to implement another round of financial assistance to sectors affected by rising fuel prices triggered by the renewed conflict in the Middle East, Malacañang said on Wednesday

Palace press officer Claire Castro said President Ferdinand R. Marcos Jr. ordered Transportation Secretary Giovanni Lopez to assess the situation and recommend measures that would cushion the impact of higher fuel costs.

“The developments have to be carefully balanced because if transportation fares increase, the prices of other goods will definitely go up as well,” Castro said.

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“The president’s goal is that no one should be left behind. Everyone who needs help must receive assistance in the proper and balanced manner,” she added.

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Among those being considered is the request of transport group Pasang Masda last week for President Marcos to restore the fare hikes on most PUVs, namely for traditional and modern jeepneys, city and provincial buses, and transportation network vehicle services (TNVS or app-based ride-hailing services).

READ: Hefty hike for diesel, kerosene as Iran war escalates

Marcos deferred the implementation of fare increases in March, saying that it was ill-timed amid the global crisis. At that time, diesel prices breached P100 per liter.

The provision of government assistance to transport workers, including fuel subsidies, is also being reviewed by the Department of Transportation.

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The Palace declined to comment if fuel subsidies and other government assistance for affected sectors will be included in the proposed 2027 national budget to be submitted to Congress.

READ: Oil prices jump following the latest fighting in the Middle East

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The Department of Energy (DOE) projected diesel prices to climb by more than P4 per liter this week, as global oil markets continued to be volatile following the renewed conflict between the United States and Iran.

Meanwhile, gasoline prices are expected to remain largely stable, with adjustments ranging from a P1-per-liter rollback or increase.

With this development, the DOE said it would do away with issuing estimated price ranges, and instead a maximum or minimum adjustment.

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“This is meant to protect consumers and ensure local pump prices accurately reflect movements in international oil prices,” Energy Secretary Sharon Garin said./gsg