Grab Philippines, taxi operators seek to raise fares
TAXI OPERATORS and transport network service company Grab Philippines (MyTaxi.ph, Inc.) are seeking to raise fares, citing the impending increase in excise taxes on fuel under the new tax reform law.
In a press conference in Makati City on Wednesday, Grab country manager Brian P. Cu said the company will file an application to increase its fares by 6-10% before the Land Transportation Franchising and Regulatory Board (LTFRB).
“We’re looking at a fare increase of anywhere between 6-10% of current fares,” he said.
With the fare hike, a GrabCar user who pays an average of P150 to P170 per trip would have to pay P11 to P13 more.
Mr. Cu noted a full-time Grab driver spends between P800 to P1,100 on fuel a day. With the new tax reform law, he said a driver would face a 5% rise in gas expenses and around 2-3% for spare parts costs.
Excise taxes are estimated to increase by P2.50 per liter for diesel, and P7 per liter for gasoline.
“This would definitely impact their daily expenses which would impact their monthly earnings, and if a fare adjustment is not made, this would put in question their income on a monthly basis and thus further potentially reduce the number of TNVS (transport network vehicle services) vehicles plying the streets, because they would be forced to find other jobs that are better paying,” Mr. Cu said.
At the same time, the Philippine National Taxi Operators Association (PNTOA) also wants to hike its flag down rate to P50 but has yet to file a petition with the LTFRB.
“We are hoping that LTFRB would on its own volition grant a temporary P10 increase in the flag down rate. But if it does not happen, yes, we will file a petition,” PNTOA President Jesus Manuel “Bong” C. Suntay said in a text message.
For the LTFRB, board member Aileen Lourdes A. Lizada said the PNTOA and other transport groups should file a petition and justify the reasons for requesting a fare hike.
“If there is a petition for fare increase filed by PNTOA or any transport group for that matter, they need to justify why the Board should grant a fare increase and what services should be delivered and likewise we need to hear the side of the commuters’ group before the Board will issue any order,” Ms. Lizada said in a separate message.
The LTFRB in October 2017 approved higher taxi fares — a flag down rate of P40 with P13.50 added per kilometer and P2 added per minute of waiting time, from rates of P3.50 for every 300 meters and P3.50 per minute of waiting time.
Taxi meters have yet to recalibrated, and the LTFRB said the increase should mean an improvement in services, including the launch of taxi-hailing applications.
“Taxi meters need to be recalibrated and part of the decision is that there are taxi apps as well, if there is a fare increase there should be a corresponding ‘ leveling up’ of their services,” Ms. Lizada said.
DOE TO CHECK OIL FIRMS
Meanwhile, the Department of Energy (DoE) expects prices of petroleum products to remain largely unchanged in the next 15 days when old stocks will be used up by retailers. However, the DoE warned that consumers will feel the full impact of the new excise tax rates on fuel by March or April.
Energy Undersecretary Felix Wiliam B. Fuentebella said the DoE had asked oil companies, which he said readily agreed, to submit their stock inventories as of Dec. 31, 2017 cut-off date and the start of the tax reform on Jan. 1, 2018.
“In addition, they have also agreed to share the data on when they sold to the dealers and retailers the stocks on which the [new] excise tax has been imposed,” he said in a press conference at the DoE headquarters in Taguig City on Wednesday.
Based on DoE computations, the price of gasoline starting on Jan. 1, 2018 — the start of the first tranche of the Tax Reform for Acceleration and Inclusion (TRAIN) — will increase by at least P2.97 per liter. Diesel will increase by P2.80 per liter and kerosene by P0.36 per liter. The price increases also include the 12% value-added tax ( VAT), the DoE said.
Mr. Fuentebella said the DoE has informed the oil companies that a team from the agency would be doing random checks on the refineries, depots and even retailers to check whether they are implementing the correct excise tax.
“We will make sure that old stocks will not be sold under new tax rates,” said Energy Assistant Secretary Leonido J. Pulido III.
Mr. Pulido said the submissions from the oil companies would include their importation, refined crude to give the DoE an idea of their existing inventory.
“We have historical data as well regarding consumption in previous years,” he said.
On top of the excise tax and the value- added tax, oil prices largely reflect the movement of prices in the international market, which move depending on the supply from oil producers and big consumers such as the US and China.
Mr. Fuentebella said other factors also have an impact on prices such as the peso rate against foreign currencies, freight costs, and the peace and order situation.
Asked about the impact of the excise tax on electricity prices, he said the DoE would be holding a meeting with the distribution utilities to discuss their distribution development plan in view of new regulations such as Renewable Portfolio Standards.
For 2019, the increase for gasoline prices under TRAIN is P2.24 per liter, while diesel and kerosene are expected to rise by P2.24 and P1.12 per liter, respectively.
For 2020, the price increases for gasoline, diesel and kerosene are P1.12, P1.68 and P1.12 per liter, respectively. —