LTFRB eyes digital rollout of P5K fuel subsidy

The Land Transportation Franchising and Regulatory Board (LTFRB) said Friday it plans to distribute the P5,000 fuel subsidy for public utility vehicle (PUV) drivers through electronic channels to speed up payouts and reduce long queues at distribution sites.

LTFRB chairperson Atty. Vigor Mendoza said the proposal was based on previous subsidy programs that successfully used digital services for faster distribution.

Mendoza said the agency has begun meeting with electronic money issuers (EMIs) to determine whether they have the capacity to handle the large volume of transactions needed to reach thousands to millions of drivers nationwide.

“In engaging the services of electronic money issuers, our goal is to ensure an efficient, secure and transparent distribution of fuel subsidy assistance to program beneficiaries,” Mendoza said.

The LTFRB added that it has reached out to all EMIs registered with the Bangko Sentral ng Pilipinas (BSP) to assess their capability and legitimacy.

President Ferdinand Marcos Jr. earlier said the government is studying the shift from physical to digital distribution of cash assistance to streamline the process.

“For distribution, we are discussing the digitization of the process. Perhaps GCash could be used. There are other LGUs like Makati that are already testing this system,” Marcos said.

Digital cash assistance systems were previously used during the COVID-19 pandemic, when several local governments distributed aid through online platforms under the Social Amelioration Program (SAP).

The Department of Social Welfare and Development also partnered with the United States Agency for International Development (USAID) to launch the ReliefAgad online platform to speed up relief distribution.

The first phase of the fuel subsidy rollout for the transport sector is scheduled to begin next week, with tricycle drivers in the National Capital Region set to receive their assistance through payout sites established by the DSWD.

Drivers of PUVs, transport network vehicle services (TNVS), taxis, and buses are expected to receive their subsidies afterward.