Jeepney and bus fare hike looms as diesel prices rise
July 6, 2008
More bad news for jeepney and bus drivers and operators and, eventually, the commuters: the price of diesel used mainly by public utility vehicles may further increase to P60 per liter — or even more — and this could ultimately lead to a new fare hike.
Jeepney and bus drivers currently enjoy slightly lower gasoline prices because diesel is being sold to them for P51 to P53 a liter. Premium unleaded gasoline, used by regular car drivers, normally sells for P60 to P62 per liter.
But according to Shell Philippines, the country’s oil industry still has to recover about P7 per liter, and that’s just for June alone.
The landed cost of diesel — or the price of the product at the final delivery point, which included actual shipping, handling and import fees — was way below its selling price at the pump. Last week, the price of oil in world markets peaked at an all-time high price of $146 per barrel.
The weakening peso, which currently trades at P45 to the dollar, also exacerbates the problem because it brings additional foreign exchange losses to oil companies in the Philippines.
Brace yourselves then for more fare increases.
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