Analy Labor
BUSINESS

Subsidies over hikes as fares freeze

Maria Bernadette Romero

The Department of Transportation (DOTr) is scrambling to cushion the blow of surging fuel costs, rolling out a fresh round of subsidies and perks as it holds the line on fare hikes.

Instead of letting transport operators pass rising costs to commuters, the agency said Wednesday it will fast-track relief measures to keep fares in check. 

These include free rides for passengers, fuel subsidies for qualified drivers and operators, and toll discounts arranged with toll operators—though coverage remains limited to land-based public transport.

“DOTr and all its attached agencies continue to act to ensure that all possible assistance and support are immediately provided to commuters, drivers, and transport operators,” the agency said.

Transportation Secretary Giovanni Lopez said he has met with toll operators, while fuel subsidies are being rushed to provide immediate relief to land transport users.

The stopgap support comes after President Ferdinand Marcos Jr. ordered the temporary suspension of fare increases for public transport, even as oil prices climbed amid ongoing unrest in the Middle East.

The now-halted hike followed a decision by the Land Transportation Franchising and Regulatory Board to approve increases ranging from P1 to as much as P40 across most public utility vehicles, excluding regular taxis and motorcycle taxis, in response to a fuel price shock driven by tensions in the Middle East.

The adjustments were set to take effect on Thursday, covering jeepneys, buses, airport taxis, point-to-point services, and transportation network vehicle services.

Under the approved rates, traditional jeepneys would have seen a P1 increase in base fare to P14, with per-kilometer rates rising to P2 from P1.80, while modern jeepneys would have gotten a P2 hike in minimum fare to P17 and higher per-kilometer charges.

City buses were also set for increases, with base fares for ordinary units rising to P15 and air-conditioned units to P18, alongside higher per-kilometer rates. 

Provincial buses across all categories would have implemented per-kilometer hikes, with ordinary buses increasing to P2.20 per kilometer and luxury units up to P3.35 per kilometer.

Airport taxis were cleared to raise flagdown rates by P40 to P115, while transportation network vehicle services would have increased base fares by P20 across vehicle types. Point-to-point buses were likewise approved for a 15 percent fare increase based on existing route rates.