Transport group Piston is preparing for a possible nationwide transport strike by the end of March as fuel prices continue to rise amid tensions in the Middle East.
Piston president Mody Floranda said government measures to cushion the impact of the expected increase in diesel prices remain insufficient, particularly if taxes on fuel remain in place.
Floranda warned that the projected diesel price hike of up to P23 per liter could further strain the already struggling public transport sector.
“With oil taxes considered, around P6,000 more is lost in our sector,” Floranda said.
He added that income losses among public transport operators have already reached about P42,000 within 25 days due to recent fuel price increases.
Transport officials earlier said the ongoing conflict in the Middle East could affect global oil markets for up to two months, pushing fuel prices higher.
Giovanni Lopez said the government has prepared P2.5 billion for fuel subsidies for public transport drivers.
The subsidy program is expected to be rolled out once global oil prices reach $80 per barrel.
Floranda, however, questioned whether the subsidy would be enough if fuel prices continue to climb.
“At first glance, this may look helpful. However, what’s the point of the subsidy if oil prices continuously increase?” he said.
The group is calling on President Ferdinand Marcos Jr. to issue an executive order suspending the value-added tax and excise tax on petroleum products.
Piston also announced that it will hold a protest rally along East Avenue in Quezon City to highlight the impact of rising fuel prices on public transport drivers and operators.