High fuel prices weighed heavily on the performance of the local transport sector as it decelerated by 7.6 percent year-on-year in the third quarter of 2008.

Data from the National Statistical Coordination Board (NSCB) showed that the dismal growth in land transport pulled the combined sectors of transportation and storage to a negative growth of 4.1 percent in the July to September period.

Crude prices in the world market peaked at $147 per barrel in the first week of July. As a result, diesel and gasoline pump prices shot up to about P60 a liter in the third quarter, forcing many motorists to leave their vehicles at home. The Metro Rail Transit Corp. and Light Rail Transit Authority both noted record ridership volume around this period, which suggested that car owners used their vehicles less and took public buses or trains on their way to work.

At the start of the fourth quarter, however, oil prices have decreased as the global financial crisis tempered demand in many economies.

Meanwhile, water transport grew 5.9 percent in the months of July to September; air transport by 3.6 percent; and storage and services, by 2.3 percent.