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INHTA will implement a 30% increase in trucking rates effective July 1
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Other groups are also negotiating a P5,000 increase in trucking rates as the price of fuel, particularly diesel, continuously surge
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The price of diesel, which truckers use, has increased by P65 per liter from January 2021 to June 2022
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PHILEXPORT assistant vice president Ma. Flordeliza Leong said there is basis for the petition but noted any cost increase means less competitiveness for exporters, MSMEs, and industries
A truckers’ group will implement a 30% hike in rates effective today (July 1) due to stubbornly high fuel prices.
The Inland Haulers and Truckers Association (INHTA) in a June 21 letter to the Supply Chain and Management Association of the Philippines said that as much as it would like to keep its rates unchanged, it is left with no alternative but to jack them up to keep operations sustainable.
The rate adjustment is, however, still subject to negotiations between the trucker and its client.
INHTA president Teodorico Gervacio, in a phone interview with PortCalls, noted that aside from fuel prices, the prices of truck parts and accessories, maintenance costs, and driver salaries have also risen.
Earlier, INHTA, the Confederation of Truckers Association of the Philippines (CTAP) and Haulers and Truckers Association in the Watersouth issued a joint advisory seeking to negotiate a P5,000 increase in trucking rates as the price of fuel, particularly diesel, continuously surge.
“…we hope you understand that the uncontrollable increase of fuel prices, truck operators have been absorbing the burden of the weekly fuel price hike,” the groups said in the June 17 advisory.
They noted that the price of diesel, which truckers use, has increased by P65 per liter from P31 per liter in January 2021 to P96 per liter in June 2022.
Last March, CTAP also issued a notice for a 30% rate adjustment but this was not implemented group-wide; final rates remained based on negotiation between trucker and his/her clients.
CTAP president Maria Zapata had said the adjustment of trucking rates is one of the interventions they have been eyeing to help relieve additional costs due to high fuel prices. She noted that if the situation continues without any intervention, truckers may be forced to stop operations due to higher operating costs.
READ: High fuel prices may force truckers to halt operations
Philippine Exporters Confederation, Inc. assistant vice president for advocacy Ma. Flordeliza Leong, in a text message to PortCalls, said: “We know because of the increasing cost of fuel affecting all other products and services, there is basis for the petition. However, and again, any cost increase means lesser competitiveness for our exporters, MSMEs [micro, small, and medium enterprises], and industries, especially in this recovery phase.
“We know from news reports that other foreign governments are trying to subsidize these costs to lessen the burden on industries and consumers. We hope the next administration can find some ways to address these cost increases without hurting especially businesses that provide goods and services,” Leong added.
In South Korea, The Cargo Truckers Solidarity Union early this June held a strike protesting against soaring fuel prices and demanding minimum pay guarantees. After eight days, the strike ended after negotiators and the union reached agreements to extend pay guarantees.
The transport ministry said it will work with parliament on extending minimum pay guarantee and review expanding fuel subsidies and support “in order to ease truckers’ difficulties from recent rise in oil prices.”
The Alliance of Concerned Truck Owners and Organizations earlier said the removal of the excise tax on fuel will be the most beneficial and immediate solution to their problem. The Department of Finance has, however, already cautioned the next administration against suspending excise taxes on petroleum, saying it is not the most efficient approach to alleviating conditions of affected sectors. – Roumina Pablo
