Freight prices are expected to rise once the Confederation of Philippine Truckers’ Associations implements a 30% increase in trucking fares due to soaring fuel prices.
Maria Zapata, President of CTAP, said the members of the group would implement a 30% increase in their respective trucking rates to allow them to provide exceptional and quality service to customers.
“We hope you understand that due to the uncontrollable rise in fuel prices in our country, our members have taken on the burden of weekly fuel price increases,” she said.
“For the record, the price of diesel [per liter] in January 2021 was P31 [more or less] compared to the current P70 [more or less] to March 8, 2022 with a P39 price difference,” Zapata said.
She said that given this, CTAP members could renegotiate another increase in truck rates as oil price hikes continue.
Data showed that in March gasoline prices rose by 11.90 pesos per liter and diesel prices by 19.80 pesos per liter, reflecting the volatility of oil prices in the world market.
CTAP transports 20ft containers from Manila International Container Terminal and South Port to selected points in Metro Manila and North and South Luzon.
There were proposals to suspend the excise tax on fuel as a means of reducing the impact on consumers of soaring oil prices on the world market, but this was rejected by the Ministry of Finance which has said the move would only delay the Philippines’ economic recovery. of the pandemic and would instead end up subsidizing the expenses of well-to-do families more than those of low-income households.
Finance Secretary Carlos Dominguez III says suspending fuel excise taxes will lead to a massive revenue loss of 105.9 billion pesos, or about half a percent of the country’s gross domestic product this year .
He said the revenue depletion would jeopardize the government’s strong fiscal position and further widen the budget deficit.