THE MIDDLE EAST crisis left the Philippine government with no other choice but to cave in to the mounting pressure applied by the public transport sector — to implement a fare increase amid an ongoing war that disrupted supply chains and caused fuel price escalations.
On March 17 (Tuesday), the Land Transportation Franchising and Regulatory Board (LTFRB) is expected to make an announcement as to the amount of increase in fares for passenger jeepneys and buses in Metro Manila in an apparent effort to cushion the effects of the so-called mega oil price hikes.
By his own admission LTFRB chairman Vigor Mendoza said that the government is compelled to provide a lifeline to drivers reeling from the ever-rising price of diesel, speculated to breach the P100 per liter mark for diesel this week.
BIGGER INCREASE
Mendoza earlier said in a radio interview that the LTFRB would announce the fare rate adjustments on Tuesday, the same day oil companies are expected to impose another round of double-digit price hikes for the second consecutive week.
According to the LTFRB chief, the fare increases will “definitely be higher” than what they initially recommended to the Department of Transportation before the start of the Middle East crisis on February 28.
Mendoza claimed that even without the fuel crisis, his recommendation was for a more tempered fare hike.
“But we cannot impose fares that are too high since it would be too hard on passengers. We also coordinated with other government agencies on the impact on inflation. We do not want prices of goods to rise too much because of our decision,” Mendoza was quoted in an Inquirer report.
NO MORE DELAYS
Mendoza said once Transportation Secretary Giovanni Lopez questions are sufficiently answered “we will immediately enforce the fare hikes. We won’t delay this any longer.”
“We do not know how long the conflict in the Middle East will last. And we know that the P5,000 [fuel] subsidy [for public transport drivers] will not be enough, especially that another price increase on fuel products is expected this coming Tuesday,” he added.
“So we need a more long-lasting solution as far as public transport is concerned. And this fare adjustment is what we have seen to help our struggling public utility vehicle drivers and operators.”
BUS CAME FIRST
Following the hikes in pump prices last week, the LTFRB on March 13 provisionally increased fares of provincial buses, which took effect the next day. The updated fare matrices were uploaded on the LTFRB’s website on Sunday.
The LTFRB raised fare for ordinary provincial buses by P1 in the base fare and an additional 30 centavos for every succeeding kilometer. Regular airconditioned provincial buses now charge 35 centavos per kilometer while deluxe and super deluxe provincial buses would pass on 45 centavos per kilometer.
Interestingly, the fare hike proposals of taxis and UV Express, though approved in principle, would still have to go through hearings and nationwide consultations.
FURTHER STUDY
Although fares for ordinary and modern jeepneys have already been raised by P1 on base rate or from P12 to P13 by the LTFRB in October 2023, another round of hikes being sought by local jeepney drivers are still being studied.
Even before the Middle East conflict, jeepney transport groups had already requested a P2 fare hike, citing rising fuel and maintenance costs, while also asking the LTFRB to make the provisional minimum fare increase permanent.
The Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide (Piston) said it would ask for a higher increase of P5 since diesel prices have increased by about P50, even after price rollbacks, since October 2023.
REFER TO MATRIX
In a statement, the LTFRB advised all provincial bus operators to strictly follow the updated Fare Guide and ensure that the approved fares are properly posted inside their units for the guidance of the riding public.
“Passengers are likewise encouraged to verify the correct fares based on the official Fare Guide and report any violations or overcharging incidents to the LTFRB through its official communication channels,” it added.
As for the MM fare hikes, Mendoza said, the LTFRB will also coordinate with other government agencies on the impact on inflation. “We don’t want the prices of commodities to increase too much because of what we’re going to do.”
CUT AIRPORT FEES
Passenger service charges (PSC) in provincial airports could be cut by as much as P200 to soften the blow of what could be a drastic spike in airfares prior to the Holy Week’s peak demand.
The Civil Aviation Authority of the Philippines (CAAP) is looking to reduce the PSC in airports under its jurisdiction to sustain flight demand in the midst of rising fuel prices.
Danjun Lucas, CAAP deputy director general, said the agency’s board of directors is discussing a P50- to P200-reduction in PSC across the 77 airports it is handling.
“Subject to board approval, this will be applied to all CAAP-operated airports. We are looking at P50 to P200 depending on the airport, but no approval yet,” Lucas told the Star.
COSTLY JET FUEL
In 2025, CAAP increased the PSC across all airports under its management. The hike was meant to generate funds for capacity expansion, maintenance projects and talent investment, especially as some regional gateways are playing a larger role in tourism.
The DOTr is targeting the PSC in CAAP-run airports because it has no control on how airfares would swing from here on, with jet fuel prices reaching new highs due to supply disruptions in the Middle East.
Based on the monitor of the International Air Transport Association, jet fuel prices have gone up on a weekly basis by 58 percent to $157.41 per barrel as of March 6. Before this, the average was way lower at $99.4 a barrel on Feb. 27.
LOBBYING AIRLINES
Lopez meanwhile instructed the CAAP to look into the option of reducing service fees paid by airlines.
This way, the DOTr can ask carriers to minimize fare hikes as much as possible, especially as the Holy Week is nearing, which is historically a time for homecomings and vacations of many Filipinos.
Lopez also directed the Civil Aeronautics Board (CAB) to shorten the evaluation period for the fuel surcharge to 15 days, from 30 days, so price reductions can be reflected quickly.
The CAB is expected to adjust the surcharge level for the first time in eight months. The regulator has set the fuel surcharge steady at Level 4 since August 2025, but this is likely changing in April so airlines can recover some of their additional costs.
FUEL SURCHARGE
At Level 4, airlines can collect a fuel surcharge of P117 to 342 for domestic flights and P385.7 to P2,867.82 for international trips, depending on the distance. Carriers are permitted to voluntarily impose a fuel surcharge to cut down losses from price fluctuations in jet fuel.
Some of the world’s largest carriers are billing passengers a fuel surcharge to cushion the impact of rising petroleum prices.
Cathay Pacific, for one, slapped a fuel surcharge of P386 on flights between Hong Kong and the Philippines, along with other destinations like Canada, Japan, New Zealand and South Korea.
All in all, fares will increase across the board in the transport sector, whether by land, air or sea, as Dubai crude oil hits $127.86 per barrel as of last week due to geopolitical uncertainties in the Middle East, the world’s largest petroleum source.
LIBRENG SAKAY
On top of reducing excise taxes on fuel and granting financial assistance to drivers, the government should also revive the government’s “Libreng Sakay” program, the Star quoted Rep. Ching Bernos.
The congresswoman from Solid North partylist pointed out that the DOTr said there is a P1-billion allocation in the 2026 national budget for the Service Contracting Program.
Through the SCP, the agency may sign contracting deals with PUV cooperatives and operators for the delivery of transport services.