DOTr seeks P5-B subsidy to cushion fuel price blow
The agency said it urgently needs the funds for its service contracting program which would allow the government to pay participating transport operators and drivers directly, reducing pressure to pass higher operating costs on to passengers. ‘When we have service contracting, the government pays our transport groups, not the commuters. At the same time, we can be assured of transportation.’
THE DoTr is urging Service Contracting Program re-funding as a response to skyrocketing of fuel prices in the country as a result of the crisis in the Middle East and to prevent transport operators from going bankrupt and block massive commuter fare hikes. Previously launched in April 2026, the SCP’s land-based phase was temporarily deactivated because its initial P740 million budget was exhausted. The DoTr is actively restoring it and has announced that it is utilizing a P1 billion allocation under the 2026 General Appropriations Act to fund another round of the program, and is proposing as much as P5 billion to implement the program nationwide.
Philippine News Agency
