The Department of Transportation (DOTr) has announced that the distribution of fuel subsidies to public utility vehicle (PUV) drivers and operators is expected to be completed by the second quarter of 2025. This move aims to alleviate the financial burden caused by rising fuel prices.
Purpose and Scope
Transportation Undersecretary Jesus Ferdinand Ortega stated that the one-time cash grant for fuel assistance will also extend to tricycle drivers and delivery riders. This measure is designed to cushion the impact of increasing fuel costs on these essential service providers.
Involved Agencies
The implementation of the subsidy program will be overseen by various government agencies through a Memorandum of Agreement. The Land Transportation Franchising and Regulatory Board (LTFRB) will supervise the distribution for PUV modes, the Department of the Interior and Local Government (DILG) will handle tricycles, and the Department of Information and Communications Technology (DICT) will manage delivery service riders.
Distribution Process
Ortega mentioned that the rollout and distribution of subsidies are currently ongoing. The target completion date is set for the second quarter of 2025, provided that all beneficiary account details are verified and finalized. The DOTr has identified 1,026,306 beneficiaries, including 286,306 PUV units, 600,000 tricycle drivers, and 140,000 delivery service riders.
Types of Support Offered
The subsidy amounts vary based on the type of vehicle and service. Drivers of modern public utility jeepneys and UV Express will receive PHP 10,500, while those operating traditional jeepneys, UV Express, minibusses, public utility buses, and Filcabs will be granted PHP 5,000. Drivers of tourist transport services, shuttle services, school transport, TNVS, and taxis will receive PHP 4,500. Tricycle drivers and delivery riders are set to receive PHP 1,100 and PHP 2,500, respectively.
Recent Fuel Price Changes
The announcement comes amid fluctuating fuel prices. On Tuesday, gasoline prices increased by PHP 0.70, while diesel prices decreased by PHP 1.15, and kerosene prices dropped by PHP 0.90.
Long-Term Impact
The fuel subsidy program is expected to provide significant relief to drivers and operators, helping them manage operational costs and maintain their livelihoods. By supporting these essential service providers, the government aims to ensure the continued availability of affordable transportation and delivery services for the public.
This move reflects the government’s commitment to mitigating the adverse effects of fuel price hikes and supporting the transportation sector during challenging economic times.