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Small oil players oppose SLEx toll hike

By Amy R. Remo
Philippine Daily Inquirer
First Posted 17:43:00 06/28/2010

Filed Under: business, State Budget & Taxes, Oil & Gas - Downstream activities, Consumer Issues

MANILA, Philippines -- Small oil players have joined militant groups and other sectors in opposing the 250-percent hike in toll fees at the South Luzon Expressway (SLEx), stressing that such a move will only result in higher fuel prices.

Fernando Martinez, chair of the Independent Philippine Petroleum Companies Association (IPPCA), supported the claim of Albay Governor Joey Salceda, who said that such a staggering toll hike will hit not only the motorists but also the general public using the expressway.

Martinez added a hefty increase in toll would have an impact on the price of cargo being transported from Metro Manila to Southern Luzon and vice versa.

Once toll fees are up, haulers will also jack up charges, forcing oil firms to raise retail prices of diesel and gasoline in affected areas.

Instead of forcing the public to cough up the amount to pay the hike in toll rates, Martinez said that it would be better for the government to suspend the implementation of Executive Order 890, which mandated a zero tariff on crude oil and finished products.

Martinez said that the implementation of the EO would lead to a P10-billion loss of revenues to the government.

"The said amount is enough to pay off the Malaysian investors in the said SLEX expansions," Martinez claimed.

He further explained that the combined collection of the 3-percent tariff that may amount to some P10 billion, plus the road tax of P7 billion?a total of P17 billion?would even be enough to make new 15-kilometer expressways every year.

The South Luzon Tollways Corp (SLTC), operator of the expressway, has deferred the implementation of the new toll rates from June 30, when President-elect Benigno "Noynoy" Aquino III will be inaugurated, to July 7.

SLTC is hiking the rates to recover the cost of rehabilitating the 27.3-kilometer Alabang to Calamba stretch, and expanding the 1.2-km Alabang Viaduct.

The current toll at SLEx (Alabang to Calamba) is P22 for light vehicles, P43 for buses and P65 for heavy trucks.



Copyright 2012 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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