The Department of Transportation (DOTr) announced on Monday it will expedite the distribution of fuel subsidies to public utility vehicles (PUV) as the government seeks to mitigate the impact of an expected fuel price surge.
“President (Ferdinand) Marcos Jr. ordered the expedited distribution of fuel subsidy to affected PUV operators and drivers once the fuel increase takes effect,” DOTr Assistant Secretary Mon Ilagan said in an interview on state TV channel.
Today (June 24), fuel prices are expected to rise by about P5 per liter of diesel and P3 per liter of gasoline, according to fuel retailers.
Ilagan added that the DOTr, through the Land Transportation Franchising and Regulatory Board (LTFRB), has been tasked to dole out the fuel subsidy, in coordination with the Department of the Interior
and Local Government (DILG) for tricycles, and the Department of Information and Communications Technology (DICT) for delivery drivers, including those working for platforms like Grab and MoveIt,
The fuel subsidy program will include bus and taxi drivers, tricycle drivers and delivery riders.
The initiative is being rolled out in anticipation of significant price hikes in the coming weeks.
Ilagan said the government has a P2.5 billion allocation to support the subsidy program.
Currently, the government agencies are finalizing a verified list of eligible beneficiaries to ensure that assistance reaches the right individuals.
The subsidy amount will be based on fuel consumption patterns and the type of vehicle used, according to Ilagan.
One of the primary objectives of the fuel subsidy is to prevent an immediate increase in transportation fares.
Ilagan ruled out a fare hike at this time.
“No fare increase at this point … priority for now is the release of fuel subsidy,” Ilagan said in mixed English-Filipino, emphasizing that support for drivers and operators will be addressed first to avoid passing costs on to commuters.
He also described the initiative as part of an integrated government approach led by President Marcos to provide immediate relief to the transport sector and shield commuters from the burden of rising fuel prices.
The National Economic and Development Authority (NEDA) — now called the Department of Economy, Planning, and Development (DEPDev) — is also assessing the potential economic impact of the program on transport stakeholders to ensure a balanced approach between the needs of drivers and the commuting public.
