RALPH CARPIO OFFICE OF THE PRESS SECRETARY
NEWS

Recto orders LGU coordination on fuel subsidies, fare discounts

Lade Jean Kabagani

Executive Secretary Ralph Recto ordered local government units (LGUs) and transport agencies to closely coordinate in rolling out the government’s nationwide transport assistance package aimed at cushioning commuters and drivers from surging fuel prices triggered by the Middle East conflict.

Recto recently convened key agencies to ensure the smooth implementation of President Ferdinand Marcos Jr.’s transport relief measures amid the oil crisis. 

He emphasized a “whole-of-government approach” in delivering subsidies and fare discounts.

“It behooves LGUs along with the DILG to team up with agencies like the Department of Energy (DOE), Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) on ensuring the seamless implementation,” Recto said.

The program includes fuel subsidies for jeepney and UV Express operators under the Pantawid Pasada Fuel Subsidy program, as well as the Service Contracting Program (SCP), which provides subsidies for bus and jeepney operators in select routes in exchange for a 20% fare discount for passengers.

“In keeping with the whole-of-government approach… the DOTr and LTFRB need to work closely with the DILG, LGUs and DOE to make sure that all target beneficiaries… are able to avail of the financial support under the SCP, and that these recipients provide the 20% fare discount to all of their passengers,” Recto said.

Under the rollout, PUV operators and drivers are set to receive subsidies ranging from P40 to P100 per kilometer to offset rising operating costs, as global oil prices surged following geopolitical tensions in the Middle East.

The Department of Transportation (DOTr) and LTFRB are expected to coordinate with LGUs and the Department of Energy to ensure proper identification of beneficiaries and compliance with fare reductions.

The program will initially be implemented in Metro Manila, starting along Commonwealth Avenue in Quezon City before expanding to major corridors such as Quezon Avenue, España, Zapote, A. Bonifacio, Rizal Avenue, and Marcos Highway.

Only accredited fuel stations monitored by the DOE will be included in the subsidy scheme, while the LTFRB is set to release a fare matrix this week to guide commuters on discounted fares.

The reduced fares will be implemented on top of the existing 20 percent discounts granted to senior citizens and persons with disabilities.

Once fully rolled out nationwide, the transport assistance package is expected to benefit around 50,000 drivers from about 1,000 operators and reach an estimated 15 million commuters.

The initiative is part of the government’s broader response under the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) Committee, convened to address the economic fallout from global oil price volatility linked to the ongoing Middle East conflict.