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Monday, April 29, 2024

Economist downplays impact of toll increase on PH inflation

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The scheduled increase of North Luzon Expressway toll on June 15 will not have any significant impact on inflation, an economist said Monday.

Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said in a message while the higher toll would be passed through as higher transport costs, its impact would be slight on prices of commodities.

He underscored that NLEX plays an important role in the transportation of food, agricultural products and other commodities from Central and Northern Luzon to Metro Manila.

“Northern and Central Luzon are major sources of vegetables and other agricultural products such as rice, corn, fruits and other agricultural products,” he said.

Ricafort said, however, “the price increase passed through would be slight, as well as [cause] some slight uptick in overall inflation, based on truckloads of products being transported on a wholesale basis.”

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Inflation has been on a downtrend since it peaked at 8.7 percent in January 2023. It eased to 8.6 percent in February, 7.6 percent in March, 6.6 percent in April and 6.1 percent in May 2023.

The slowdown in May, a one-year low, was driven by slower increases in the prices of transport, food and non-alcoholic beverages.

Finance Secretary Benjamin Diokno earlier blamed the “inaction” of previous administrations for the piled-up increases in the toll at the North Luzon Expressway.

Diokno said the petitions were carefully studied and analyzed and approved objectively and fairly.

He said the government should perform its contractual obligations under the supplemental toll operation agreements.

“We’re promoting PPPs [public-private partnerships]. And the government will have no credibility as a partner if it does not comply with its contractual obligations under past PPP contracts,” Diokno said.

NLEX Corp., which manages the highway, said an additional P7 would be collected in the open system beginning June 15, while P0.36 per kilometer would be collected in the closed system. The Toll Regulatory Board approved the rate adjustment.

Under the new toll fee matrix, an additional fee of P7 will be charged on Class 1 vehicles, P17 for Class 2 vehicles and P19 for Class 3 vehicles.

Those traveling the whole stretch of NLEX between Metro Manila and Mabalacat City will pay an additional P33 for Class 1, P81 for Class 2 and P98 for Class 3 vehicles.

The open system covers the cities of Navotas, Valenzuela and Caloocan in Metro Manila Manila and Meycauayan and Marilao in Bulacan province.

The closed system covers the portion between Bocaue, Bulacan and Sta. Ines, Mabalacat City in Pampanga, including Subic-Tipo.

NLEX Corp. said the new rates were part of the authorized periodic adjustments due 2012, 2014, 2018 and 2020. This year’s adjustment is the fourth and last tranche of the 2012 and 2014 adjustments.

NLEX Corp. said it would continue to honor the discount given to public utility jeepneys under the NLEX Pass-ada and Tsuper Card programs.

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