Loren sees win-win solution for commuters, PUV drivers

If the government is dead serious in helping the riding public, it must quickly act its plan to lower public utility vehicle (PUV) fares in view of the continuing reduction in the prices of petroleum products.

Senator Loren Legarda issued yesterday this admonition, noting that the Land Transportation Franchising and Regulatory Board (LTFRB) had set for Nov. 4 the start of the dialogue for fare reduction.

"That's about two weeks from now. Why not table the matter immediately because the dialogue may take some time as it should involve all affected sectors, including commuters, drivers and PUV operators and representatives of oil companies," she said.

She stressed that a balance must be struck in which commuters will not be burdened with unreasonable fare levels, while drivers, operators, as well as oil companies, get reasonable returns," she said.

"I know there's a win-win solution for all somewhere there. The dialogue is okay, but let's start it immediately," Legarda added.

She warned that the planned lowering of fares may be overtaken by events if the dialogue concerning it is not to start till early next month.

Legarda cited the recent announcement of the Organization of Petroleum Exporting Countries (OPEC) that it is reducing its output soon in view of the global lowering of the prices of oil and its derivatives like gasoline, diesel and liquefied petroleum gas (LPG).

"Any lowering of output by OPEC is bound to jack up oil prices anew," said Legarda.

"Time is of the essence here. The government must consider the fact that OPEC may effect its planned cut on its output anytime now," she said.

"If the dialogue is to take place on Nov. 4, any fare rollback may no longer be applicable because by then the price of crude in the world market may be soaring high anew as a result of the OPEC plan."

Legarda said the riding public must be afforded some relief through a fare rollback while oil prices are still below $70.

Prices of crude and oil in the world market have gone down 55 percent since striking record highs in July as global economic slowdown slashes demand.

The prices even went down to as low as $65.45 per barrel in Brent North Sea, when three months ago prices in the world market reached $147.50 per/barrel because of supply worries.

OPEC's 12-member countries supply 40 percent of the world's demand. Saudi Arabia is the world's biggest oil exporter.