IPPCA opposes SLEX toll hike, wants EO 890 scrapped
The Independent Philippine Petroleum Companies Association, a group of leading independent oil players, has joined militant groups and other sectors in opposing the 250-percent increase in fees of the South Luzon Expressway (SLEX). Such a move, it said, will only result to higher fuel prices.
"Instead of forcing the public to adhere to the hike of toll rates, it would be better if the Government will suspend the implementation of Executive Order 890, signed by outgoing President Gloria Macapagal-Arroyo, which mandates a zero tariff on crude oil and finished products," Fernando Martinez, chair of the group also know as IPPCA, said Monday.
The EO would mean a P10-billion revenue loss for the government, Martinez said. "The said amount is enough to pay the Malaysian investors in the said SLEX expansions."
The 3-percent oil tariff is around P10 billion and the road tax is about P7 billion, according to IPPCA. Combined, the two revenues are enough to make a 15-kilometer expressway each year, Martinez said.
Martinez agreed with Albay Gov. Joey Salceda that the toll hike would not only have an impact on motorists who use the SLEX but also on the public at large.
Higher fees on the SLEX would have an impact on the price of cargo passing through it. Once the fees are up, haulers would also increase charges that could force oil firms to raise the retail prices of diesel and gasoline, IPPCA said.
The increase in toll was supposed to take effect next Wednesday, or June 30, but SLEX operator South Luzon Tollways Corp. decided to move the date to July 7 in deference to the inauguration of President-elect Benigno "Noynoy" Aquino III.
The SLEX rehabilitation, which cost roughly P11 billion, expanded the 1.2-km Alabang Viaduct and the 27.3-km road from Alabang to Calamba. It was funded by Malaysian investor MTD Capital Berhad.
The toll hike, according to operator South Luzon Tollways, will help the Malaysian company recoup its investment. —VS, GMANews.TV