DoTr to subsidize PUJ this July

Thousands of public utility jeepney (PUJ) operators and drivers nationwide stand to get subsidy this July from the Department of Transportation (DoTr) in the aftermath of recent oil price hike resulting from the implementation of the Tax reform for Acceleration and Inclusion (TRAIN) law.

The fuel subsidy will be coursed through the DoTr’s fuel voucher program which DoTr will launch precisely to cushion the impact of the oil price hike.

The fuel subsidy program will cover around 179,000 PUJs nationwide.

“The subsidy is open for jeepneys with legitimate or valid franchises,” said DoTr Public Information Director Godess Hope Libiran.

The DoTr is working to allocate P977 million budget to provide a P5000 subsidy to 179,852 legitimate PUJ franchise holders for the initial implementation of the program.

The initial phase will be coordinated with various agencies such as the Department of Energy (DoE), Department of Finance (DoF), Department of Budget and Management (DBM), Land Transportation Franchising and Regulatory Board (LTFRB), and the Land Bank of the Philippines (LBP).

Beneficiaries will be using debit cards that will be processed by LBP.

The subsidy program is in accordance with Section 82 of Republic Act 10963 or the TRAIN Law which calls for the provision of fuel vouchers to qualified PUJ franchise holders.

“The Fuel Subsidy Program aims to cover 100 percent of legitimate PUJ units with existing LTFRB franchise covering five years upon execution of the TRAIN Law,” Libiran said.

The DoTr is set to sign a Memorandum of Understanding with the DoE and oil companies to ensure the cooperation of the petroleum industry in the implementation of the program.

The department is also considering to sign a MoA with the LTFRB and LBP to set the mechanics of the program, card distribution agreements, and financial reporting mechanisms.