No need to increase transport fares -DOE

Lorraine Alberto & Micole Vergaño | February 6, 2018

Photo from Lorraine Alberto

According to the Department of Energy, there is no reason to increase transport fares due to the newly implemented excise tax on diesel.

“There is no immediate need for a fare hike on the basis of the TRAIN (Tax Reform for Acceleration and Inclusion) law,” Assistant Energy Secretary Leonido Pulido III said in a press briefing yesterday.

Pulido said that the Train Law has it's own way that would alleviate the outcomes caused by the new tax law specially to those public commuters.

"We are awaiting instructions based on the implementing rules of the TRAIN law,” Pulido said. “[Crafting the rules] is an interagency effort led by the Department of Finance and the Department of Budget and Management,” he explained.

Pulido added that oil companies have their own corporate social responsibility (CSR) programs that give discounts to all public utility vehicles (PUVs) drivers.

“To help mitigate the impact of the imposition of the new excise tax rates on the commuting public, the DOE also held talks with several oil companies to provide, renew or to expand their discount mechanisms to (PUV) drivers,” he said.

“In the following weeks, the DOE will be executing memorandums of agreement with several oil companies to formalize such CSR programs, " Pulido added.

Pulido also cited “the correlation of historical data between 2014 and 2016 as a third reason against the increase on transport fares". He said that there are no major impacts on the prices of rice and transport fares during this period.

“The DOE believes that there would be a minimal impact on the public transportation sector,” Pulido said.

Furthermore, Pulido ensured that the DOE would stay vigilant in ensuring that oil forms would implement the TRAIN law “fairly and responsibly” that would save consumers a lot of money.