Iloilo city: The Sangguniang Panlungsod (City Council) on Wednesday passed resolutions aimed at alleviating the financial burdens faced by transport cooperatives in Iloilo City due to escalating fuel costs. These resolutions call for an emergency debt moratorium for transport cooperatives, the suspension of excise taxes on fuel, and increased frequency of government subsidies.
According to Philippines News Agency, in his privilege speech, Councilor Romel Duron emphasized that transport cooperatives had complied with the government's modernization initiatives but were now facing potential bankruptcy. Duron highlighted the dire economic conditions of drivers, stating that the most significant economic indicator for them is the fuel tank's empty light. He described the transport sector as not just struggling but "bleeding out."
Duron shared a detailed computation revealing that traditional jeepneys, carrying an average of 14 passengers per trip, generate PHP182. To reach a daily income of PHP12,184, a driver needs to complete 12 trips, which still falls short of covering fuel and boundary costs. After a 12-hour workday, the take-home pay amounts to a mere PHP100. For modernized jeepneys, the situation is even more challenging, with daily fuel consumption costing PHP2,400 and operational expenses reaching PHP3,900 when factoring in mandated salaries. Yet, trips carrying 20 passengers at an average fare of PHP15 yield only PHP300 per trip, resulting in a gross income of PHP3,000 for 10 trips.
Duron further pointed out that these calculations exclude the high costs of maintenance, specialized parts for modern units, and monthly bank amortizations. He stressed that the financial strain threatens to halt transportation, effectively bringing Iloilo to a standstill.
In a subsequent interview, Duron explained that the resolutions seek to provide monthly subsidies and initiate a debt moratorium lasting at least a year or until the cooperatives can manage their amortizations. During the Local Public Transport Route Plan's preparation, the decision was made to reduce the number of traditional jeepneys from 2,538 to 1,782 modernized units. However, only approximately 568 modernized jeepneys have been achieved so far.
