CAGAYAN DE ORO CITY — Transport cooperatives and corporations are formally requesting a temporary suspension of monthly payments for modernized vehicles, citing a financial crisis that has left many operators unable to cover their bank loans.
Orlando Marquez Sr., national president of the Liga ng Transportasyon at Operators sa Pilipinas (LTOP), told DAILY TRIBUNE that fixed monthly payments now exceed available income by as much as 300 percent for some members.
The group is preparing a joint appeal to President Ferdinand Marcos Jr. and state-run lenders.
Data from the Land Transportation Franchising and Regulatory Board (LTFRB) shows approximately 12,000 modernized units are at risk, including 7,000 owned by cooperatives and 5,000 by corporations.
The Public Utility Vehicle Modernization Program, launched in 2017, requires monthly amortizations of P25,000 to P32,000 for jeepneys and up to P45,000 for buses. These rates were calculated when diesel averaged P58 per liter in early 2025. Prices have since surged 45 percent to over P84 per liter.
“The numbers simply do not add up — we cannot pay what we do not have,” said a representative from the Consortium of Mindanao Transport Cooperatives and Corporations.
Current earnings illustrate the shortfall. An average modern jeepney now nets approximately P24,800 monthly after fuel and maintenance costs — less than the minimum P25,000 loan payment. Modern buses face a similar gap, netting P32,000 against a minimum P38,000 requirement.
Marquez noted that existing government aid has been insufficient. While the Department of Social Welfare and Development (DSWD) provided P5,000 to tricycle drivers, Marquez argued that traditional jeepney drivers require P10,000 and modern jeepney operators need P15,000 to remain viable.
DSWD Secretary Rex Gatchalian acknowledged the inadequacy of current subsidies. He said the agency is reviewing a proposal to increase the subsidy to P3,500 for qualified beneficiaries and expand eligibility by late April 2026.
Meantime, LTFRB chairperson Vigor D. Mendoza is reportedly coordinating with the Development Bank of the Philippines and Land Bank of the Philippines to assess the request. Potential relief measures include a three- to six-month grace period on principal payments or restructuring installments to fluctuate with current income levels.