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Trucking firms are raising their freight rates or some may even halt operations if the government does not address the spiraling price of diesel
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The Alliance of Concerned Truck Owners and Organizations called on the government to step up and provide “prompt and fair solutions” to rising fuel prices
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It said the current fuel situation is “an existential threat to the road freight sector and the consumers it serves”
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The group noted that one-third of truck operating expenses go to fuel
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The diesel pump price they cited is taking effect this week as the Department of Energy announced on Monday a P20.40 to P23.90 per liter increase for diesel
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While government officials appealed for fuel conservation amid the crisis, ACTOO stressed that trucking fleets have no feasible way to “conserve” diesel without slashing services
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Group supports legislation that would allow temporary removal of fuel taxes during global emergencies
Trucking firms are raising their freight rates or some may even halt operations if the government does not address the spiraling price of diesel, according to the Alliance of Concerned Truck Owners and Organizations (ACTOO).
In a statement issued late last week, ACTOO called on the government to step up and provide “prompt and fair solutions” to rising fuel prices, which it describes as “an existential threat to the road freight sector and the consumers it serves.”
ACTOO, in a statement, said it is “sounding a dire alarm” as “global turmoil has triggered projected diesel price hikes of P17.50-P24.25 per liter – an unprecedented one-week surge.”
The group noted that one-third of truck operating expenses already go to fuel, “so a price shock of this magnitude is unsustainable” and cannot be simply absorbed by truckers.
ACTOO warns that if diesel hits near P80-P90 per liter, trucking firms will have no choice but to raise freight rates or even halt operations, adding that such a scenario “could choke the flow of food and critical supplies. The group is urgently calling for action before the supply chain grinds to a halt.”
That price level is taking effect this week in parts of the country as the Department of Energy announced on Monday that fuel retailers will increase diesel rates by P20.40 to P23.90 per liter. Diesel pump price already ranged from P66 to as much as P90 as of March 16.
While government officials appealed for fuel conservation amid the crisis, ACTOO stressed that trucking fleets have no feasible way to “conserve” diesel without slashing services.
“Unlike private cars, diesel fuel directly powers the trucks that deliver food, medicine, and raw materials. Every liter is used to move goods; any forced cutback in fuel use means fewer trips and fewer essential goods delivered to communities,” the group pointed out.
Blanket calls to conserve energy don’t translate to trucking as the industry’s fuel consumption is entirely mission-critical. Truck owners fear being unfairly blamed for high fuel usage, when in reality they are burning diesel to keep the economy’s lifeblood flowing.
Amid government and some private offices shifting to hybrid work arrangements to curb fuel use, ACTOO said its members are willing to cooperate with any energy-saving measures but that they cannot independently shorten the workweek unless their clients do the same.
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“A trucking company can close its office on Fridays, but if factories, farms, or ports are still operating, their cargoes will still pile up waiting for delivery. Warehouses don’t always stop running when corporate offices do,” the group noted.
It added that a four-day workweek for truckers could actually backfire as deliveries of fresh produce, groceries, and fuel itself would be squeezed into fewer days, likely causing delays and bottlenecks.
ACTOO said it has instructed members to adjust schedules where possible to align with clients observing a four-day workweek.
“However, trucks can’t simply take a day off if the rest of the supply chain still needs to move. ACTOO fears that a haphazard adoption of a four-day week in logistics would slow down the transport of essential commodities and worsen the crisis instead of easing it,” the group said.
ACTOO said truck operators “are doing everything they can to cope”, but the group “insists the government must now step in with meaningful relief.”
It noted that targeted subsidies for select sectors – which authorities have floated as a measure instead of suspending fuel taxes – “won’t come fast enough nor cover the scale of this emergency.”
“ACTOO is pleading for prompt and fair solutions,” it said, adding that it supports legislative efforts that would allow temporary removal of fuel taxes during global emergencies.
ACTOO said this could instantly shave off some cost for diesel and give truckers and consumers “a fighting chance.”
It added that even a short-term suspension of the P6 per liter excise tax – as well as the value-added tax – would provide truckers “breathing room” and could be lifted once fuel prices stabilize.
“We are not looking to profit – we are trying to survive and keep goods moving,” the group said.
“With government coffers reportedly bolstered by fuel taxes in recent years, now is the time to channel those funds back as relief-either by cutting pump prices via tax breaks or by swiftly subsidizing diesel for transporters,” it added.
Moreover, ACTOO urged the government and the private sector to treat the fuel price spike as a national crisis requiring shared sacrifice and immediate action.
“Truckers have carried the economy’s goods through every calamity, from pandemics to natural disasters. Now they need support to win this fight.”
READ: Port stakeholders fear higher logistics costs due to congestion; trucks in short supply
“This is a war not of our choosing, and a war with no winners but together we can prevent a total loss-if we act decisively now,” ACTOO said.— Roumina Pablo
