The Land Transportation Franchising and Regulatory Board (LTFRB) is reviewing possible measures to address the expected increase in fuel prices.
In an interview, LTFRB Chairman Vigor D. Mendoza II said the Department of Transportation (DOTr) has directed the agency to study both a possible fare hike and the reimplementation of a fuel subsidy program.
According to Mendoza, following the recent wage increase, the agency believes that minimum wage earners can still absorb a reasonable fare adjustment.
However, he noted that if fuel prices reach P90 per liter, a fare increase alone may no longer be enough to address the impact.
Another option being considered is the return of the fuel subsidy program, including a proposed P10-per-liter discount for public utility vehicles.
Mendoza said that, if given the choice, he would prefer implementing a fare increase over providing fuel subsidies.
He explained that reviving the subsidy program could cost the government P2.4 billion per month, funds that, he said, could be allocated to other public needs instead of subsidizing fuel prices.
(PHOTO COURTESY: LTFRB)
