CAGAYAN DE ORO CITY — Transportation cooperatives have sought a temporary moratorium on the payment of loans for modern jeepneys amidst the rising fuel crisis.
Luzminda Escobidal, president of the Northern Mindanao Federation of Transport Service Cooperatives, said they are losing as much as ₱80,000 a day per cooperative as diesel prices exceed ₱100 per liter.
She said long-distance routes of buses, which used to generate at least ₱20,000 per day, have been reduced to only ₱10,000, minus the maintenance salaries of employees.
She added that a temporary suspension of amortization payments for units procured under the government’s Public Utility Vehicle Modernization Program (PUVMP) would help transport operators cope with rising fuel costs.
An estimated total of more or less 12,000 modernized units are at risk, with 7,000 units owned by transport cooperatives and close to 5,000 by transport corporations, procured under the PUVMP, per inventory by the LTFRB.
Launched in 2017, the PUVMP is a flagship initiative of the Department of Transportation (DOTr) designed to replace old, dilapidated PUVs with safer, more environmentally friendly, and compliant units. The program’s financing scheme sets fixed monthly amortizations based on original projections:
Modern jeepneys: ₱25,000 to ₱32,000 per unit per month (10-year loan term at 6% interest)
Modern buses: ₱38,000 to ₱45,000 per unit per month (12-year loan term at 5.5% interest)
On Saturday, Aljo Bendijo, LTFRB regional director, announced the release of a fuel subsidy to help PUV drivers and operators manage rising fuel prices, offering ₱5,000 for traditional jeepneys and up to ₱10,000 for modern jeepneys.
The subsidy, part of a ₱2.5 billion program, is being distributed through Landbank and digital wallets (GCash/Maya).
He said he will meet with transport groups in Northern Mindanao to discuss the release of the fuel subsidy.