CEBU CITY, Cebu, Philippines  (PNA) – Taxi-riding passengers in Cebu are bracing for a hike in cab fares after Pilipinas Shell Petroleum Corp. (PSPC) increased the price of an 11-kilogram tank of liquefied petroleum gas (LPG) here by P37.

Richard Cabucos, Chairman of the Metro Cebu Taxi Operators Association (MCTOA) said based on such increase in LPG prices, the MCTOA figures fuel tax would go up by around P1.55 per liter. He said since a taxi unit, on the average, consumes some 30 liters of LPG a day, a cab driver would see himself spending an additional P45 per day.

"We want an audience with officials of the Land Transportation Franchising and Regulatory Board (LTFRB) so we can discuss possible solutions to this problem," Cabucos said.

The MCTOA chair said the LTFRB had already approved increasing flag down rates of taxis from P30 to P40 when the price of LPG was still P29 per liter. That decision however was revoked by the agency.

"Now that LPG is almost P39 per liter, the LTFRB should give its nod on another pending fare hike petition," Cabucos said.

Starting midnight of Dec. 1, price of LPG under the brand Shellane was increased by P37 per 11-kg tank, from P740 to P777.

Clarissa Estencia of Jet Sales Corp., a dealer of Shellane LPG, said the increase effected by PSPC, which owns Shellane, is nationwide.

However, Beverly Navaja of Evergas Trade Sales, which sells LPG bearing the Gasul brand owned by Petron Corporation said his company has maintained the price of their LPG at P727 per 11-kg. tank since Nov. 9, which, according to Oseas Longakit, senior research specialist of the Department of Energy (DoE) Visayas field office was the last time the price of LPG was increased.

Any company can increase the price of LPG and LPP (liquid petroleum product) that includes gasoline and diesel without public hearing per the Oil Deregulation Law, the only requirement being is to inform the DoE at least a day before an increase in price for those products is implemented, Longakit said.

He said any increase in LPG and LPP price is all up to the company. In Cebu, the DoE-listed LPG brands are Shellane, Gasul, Pryce Gas and Petronas.

Because most of the main offices of LPG and LPP companies are based in Metro Manila, all that the Cebu branches need to do is inform the DoE Central office at Fort Bonifacio, Taguig City about an increase in the price of their products.

"Oftentimes, we at the DoE Visayas field office will only know of any increase in LPG and LPP products on the radio, TV and newspapers," Longakit said.

He further said that 60 to 70 percent of the supply of LPG supply is consumed by households and the remaining 30 to 40 percent used by taxis.