Before the pandemic, jeepney drivers traversing the Project 6 to Quiapo route earned around P1,500 daily. Now, because of COVID-19 restrictions and oil price hikes, a driver would already be lucky if they earn P300 in a day, Xavier Fajardo of transport group PISTON said.

“Sa taas ng presyo ng langis ngayon, tapos may restrictions pa sa pandemya, may mga kasama na kaming namamalimos na lang o kaya binebenta ang jeep,” Fajardo said. “Mas sigurado pa kasi kami na may kita pag binenta ang jeep kaysa magpasada pa kami.”

Since January, oil prices have been gradually increasing until they suddenly spiked last October. As of October 27, gasoline in Manila costs P64.70 per liter, kerosene at P57.99, and diesel at P53.22, according to the Department of Energy. Local oil firms cite the swelling price of oil in the world market as the reason for their price hikes.

Expecting oil price hikes to continue, transport groups like PISTON are calling for the repeal of the Oil Deregulation Law, higher fuel subsidies, and suspension of the 12-percent value-added tax (VAT) and excise taxes on fuel. Implementing an oil tax relief alone may cut down the price per liter of diesel by P7 pesos and gasoline by P6 pesos, Fajardo said.

But for think-tank IBON Foundation, while the increase of oil prices may ultimately be rooted in the world market, this does not mean that the government can do nothing to help jeepney drivers and consumers cope with the skyrocketing price of gasoline and commodities.

Government Neglect

Seeing no end in sight for these price hikes, Fajardo said jeepney drivers are now worried about how their families would survive with their meager income as the cost of commodities and utilities continues to climb alongside oil.

“Sobrang hirap at gutom na yung ibang mga kasama ko,” Fajardo said. “Ngayon na tumataas na ang mga presyo ng bilihin, ang tanong na lang ng mga kasamahan ko ay saan na kami ngayon huhugot ng pera para sa gastusin namin araw-araw.”

The country's inflation rate in September has eased to 4.8 percent from 4.9 percent in August. However, this is still above the government's target of 2 to 4 percent, mainly due to the increase in food (6.2 percent) and transportation costs (5.2 percent), according to the Philippine Statistics Authority.

Since August, gasoline prices have risen by P10.30, diesel by P8.65, and kerosene by P8.25. While jeepney drivers have yet to recover from the effects of the COVID-19 restrictions on their livelihood, these oil price hikes came into effect, worsening their already dire situation. 

Fajardo also lamented that most of the P5.58-billion Service Contracting Program, a type of COVID-19 aid for public utility vehicle (PUV) drivers, were largely left unspent, and some did not even receive the P8,000 financial aid from the Social Amelioration Program (SAP).

But even with direct cash aid like SAP, IBON estimated that it was not enough to offset the P78,000 worth of income each jeepney driver lost from the suspension of mass transport from March to May last year.

“Alalahanin sana ng gobyerno na kami ay frontliners din, kami ay isa sa mga naghahatid ng mga health workers,” Fajardo said. “Kung kami’y hihinto sa pamamasada dahil kulang ang tulong, saan sasakay ang mga health workers at manggagawa?”

Short-Lived Relief

In an attempt to ease the burden of oil price hikes to PUV drivers, the Land Transportation and Franchising Regulatory Board announced a P1-billion fuel subsidy that will be distributed to 178,000 drivers. Each beneficiary would get a one-time P5,600 fuel discount. For IBON’s Sonny Africa, this is not enough.

“Kung isahang bigay lang iyan, maaubos agad iyan dahil hindi naman magically na bumababa ang presyo ng petrolyo. Hindi lang rin naman mga jeepney drivers ang kailangan ng tulong, kailangan din iyan ng milyong-milyong tricycle drivers at mga pamilyang gumagamit ng LPG,” Africa said.

For Fajardo, it would be more efficient and inclusive if the government would instead suspend the 12-percent VAT and the higher excise taxes on fuel under the Duterte administration's TRAIN Law. However, the Department of Finance opposed the proposal, arguing that waiving fuel taxes would cause a P141.7-billion loss from the government.

But the projected shortfall could be easily augmented by suspending the corporate income tax cuts worth over P200 billion, mandated by the CREATE Law, Africa noted. The law, which took effect last April, gave large and foreign corporations tax breaks so they can supposedly help the country’s economic recovery.

“Pinapakita lang ng sitwasyon ngayon na tama ang pinupuna natin noon tungkol sa TRAIN at CREATE Law—na sila’y anti-poor,” Africa said.

While PUV drivers and consumers may immediately benefit from fuel subsidies and suspension of fuel taxes, these domestic measures will not prevent future oil price hikes, Africa said. The Philippines will continue to follow the volatile movement of oil prices in the world market as it continues to be heavily reliant on imported oil.

Asserting Influence

Widely regarded as a cartel, the Organization of the Petroleum Exporting Countries (OPEC) was formed in 1960 to supposedly monitor the petroleum market supply. It controls over 40 percent of the global crude oil production and 80 percent of crude oil reserves, mostly situated in the Middle East.

OPEC leaders have agreed to pump less oil until 2018 to compete with the shale oil production boom in the US. OPEC’s move caused a steady increase in oil prices until, as of last October 25, the benchmark Brent crude oil prices jumped to a three-year high of USD86.09 per barrel. Analysts forecast that global oil prices may continue to rise, but OPEC has only agreed for a "gradual" increase in oil production.

Though the Philippines does not have the power to fix prices in the world market, Africa said that the government can work on long-term solutions to control local oil prices. Since the passage of the Oil Deregulation Law, IBON reported that domestic oil firms have been inflating oil prices by more than what increases in the global crude oil prices necessitate.

Likewise, the repeal of the Oil Deregulation Law and renationalization of Petron can also give the state more control over oil prices, Africa noted.

Previously state-owned, Petron was established to increase competition in the local oil industry. Renationalization of Petron would effectively hand over 18.6 percent of the domestic oil market share under the state. It would also allow the government to craft effective laws against dubious pricing schemes from the knowledge it gained from operating Petron, Africa said.

“Ang point lang namin ay mahalagang may long-term view na ang gobyerno based on global trends para di tayo laging naghahabol lang at nagre-react kapag tumaas ang presyo,” Africa added. “Sa mga oil firms, wala naman silang pakialam sa long-term eh, kasi ang gusto lang nila makuha ang mga short-term profits nila.”

Jeepney drivers have long been calling for tighter regulations on the local oil industry. As their calls remain unheeded by the government, jeepney drivers are forced to deal with the rising oil price and the pandemic’s economic impacts at the same time.

“Sa panahon na tinanggalan niyo kami ng pamamaraan upang kumita ngayong lockdown, marapat lang na tulungan niyo kaming makabangon mula sa lugi,” Fajardo said. “Kung may malasakit talaga ang gobyerno sa amin, bakit hindi nila pinakikinggan ang mga hinaing naming mga jeepney driver?” ●