Oil price rollbacks call lower fare rate

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Oil price rollbacks call lower fare rate

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The three successive reduction of prices of gasoline prompted the riding public to clamor for further reduction of the minimum fare rate of tricycles-for-hire in the city.

The city government already reduced the minimum fare to P7 effective February, but tricycle drivers continued to collect P8 as minimum fare.

The three weekly successive rollbacks of oil prices on June 23, June 30 and July 7 dropped the average price of unleaded gasoline in the city to P44.40 per liter.

Another hefty rollback is expected on Tuesday, according to gasoline stations in Tagbilaran.

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By that time, tricycle drivers will no longer have any excuse to defy the P7 minimum fare.

From an average of P46.15 per liter the prices of unleaded gasoline dropped to P45.10 per liter on June 30, then to P44.40 per liter on July 7.

Sangguniang Panlungsod Member Jeremias Pabe, chair of the SP Committee on Public Utilities, said he had already started drafting a proposed ordinance that would set a formula that will govern adjustment on minimum fare rates based on the relation between unleaded gasoline price movement and the standard income of tricycle drivers.

Based on advancer reports of the broadsheets quoting an official of the oil industry, the rollback this Tuesday can be attributed to the “negative overseas developments [that continue] to dampen trading in the global oil market”.

Diesel prices are expected to drop by more than P1 per liter, and gasoline prices by more than 50 centavos.

Other factors cited are the “debt crisis in Greece, uncertainty in the Iranian nuclear deal and the bearish stock market in China are causing the weakness in the world oil market” in addition to the “oversupply of petroleum products affect world oil prices”.

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Generally it is the situation in Greece and “worries over China’s economy” that topped the factors pushing oil price rollbacks in the local market, according to reports.

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