Bus Operators Warn of Service Cuts as Diesel Price Surges P8.82 Per Liter

 

Bus operators are warning of mounting pressure on public transportation services as another steep fuel increase pushes operating expenses higher, raising concerns that a prolonged fare freeze could eventually affect the availability of buses on provincial and city routes.

Diesel prices rose by ₱8.82 per liter on September 22, marking the third consecutive week of major fuel increases. Gasoline prices also went up by ₱4.88 per liter, while kerosene increased by ₱6.47.

The latest adjustment brings the three-week increase to ₱18.31 per liter for diesel, ₱15.25 for gasoline and ₱16.67 for kerosene.

For bus operators, fuel represents an estimated 45% to 60% of total operating expenses. The rapid increase is therefore placing immediate strain on revenues that are already constrained by regulated passenger fares.

In an appeal circulated through Victory Liner, major bus industry organizations asked the government to reconsider the suspension of fare increases that had previously been approved earlier this year.

The appeal was signed by the Provincial Bus Operators Association of the Philippines, Nagkakaisang Samahan ng Nangangasiwa ng Panlalawigang Bus sa Pilipinas Inc., SOLUBOA and the Mega Manila Consortium.

The operators said the problem extends beyond fuel alone. Higher diesel costs are compounding expenses related to fleet modernization, vehicle loans, spare parts, tires, preventive maintenance, insurance, toll fees and regulatory requirements.

Labor costs could add another layer of pressure as an impending wage increase is expected to raise personnel expenses. Operators argued that adjustments in worker compensation must be accompanied by sufficient operating revenue if bus services are to remain financially sustainable.

The groups emphasized that their appeal should not be interpreted as an announcement of an immediate shutdown. Instead, they warned that continued increases in operating costs without corresponding adjustments in regulated fares could make some routes increasingly difficult to maintain.

The situation illustrates the financial imbalance facing regulated public transport. When the cost of providing a service rises substantially while the price passengers are allowed to pay remains unchanged, operators have fewer resources to cover maintenance, replace aging vehicles and sustain adequate fleet levels.

For commuters, the concern extends beyond the price of a bus ticket. If operators reduce trips or defer vehicle maintenance because of financial constraints, passengers could eventually face fewer available buses, longer waiting periods and reduced service frequency.

With fuel prices continuing to climb, the bus industry's appeal puts renewed attention on the gap between regulated fares and the actual cost of keeping public transportation running.