The Department of Transportation (DOTr) has warned domestic shipping lines against imposing steep passenger fare hikes, signaling tighter oversight from regulators led by the Maritime Industry Authority (MARINA).
Transportation Secretary Giovanni Lopez said authorities have received reports that some operators raised fares by more than 20 percent from previous levels, prompting the DOTr to order closer monitoring of price adjustments.
Although passenger and cargo rates in the domestic shipping sector are largely deregulated, Lopez stressed that the freedom to set prices does not give operators a blank check.
“Shipping lines suddenly raised fares because they are deregulated,” Lopez said in a radio interview. “But increases should remain within what is reasonable. If the hike becomes unconscionable or exorbitant, it can become illegal.”
MARINA had earlier issued guidance indicating that fare adjustments should hover around 20 percent of previous rates. Increases beyond that threshold could now trigger regulatory scrutiny and possible sanctions.
The warning reflects growing concern that sharp fare hikes could hit inter-island travelers, many of whom rely on sea transport as the most affordable way to move between provinces.
At the same time, the DOTr is moving to help airlines cope with surging fuel costs by shortening the review period for fuel surcharge adjustments to 15 days from the current longer cycle.
Airlines have flagged rising operating expenses, particularly jet fuel, which has climbed to around USD190 per barrel from USD98 per barrel previously.
The faster review process would allow regulators to respond more quickly to market volatility while still ensuring that surcharges remain justified.
Taken together, the moves highlight the government’s balancing act of keeping transport operators financially viable while preventing fare shocks that could ripple across the traveling public and the broader economy.
