JAKARTA - The Philippine government has accelerated the distribution of fuel subsidies for operators and drivers of public transportation, as well as implementing a discount on fares for passengers, following the rise in oil prices due to the conflict in the Middle East.
In a report by the Philippine News Agency (PNA) quoted on Thursday, April 16, the move was decided after a meeting led by Executive Secretary Ralph Recto at the Malacanang Palace, Wednesday, with a number of related institutions. According to a statement from the Office of the Executive Secretary, President Ferdinand Marcos Jr. asked institutions in the transportation and energy sectors to ensure that assistance programs run smoothly and are coordinated.
Recto said the local government, together with the Ministry of the Interior and Local Government, must work with the Department of Energy, the Department of Transportation, and the LTFRB to make the implementation of the program run smoothly.
The assistance package includes fuel subsidies for operators and drivers of jeeps and UV Express through the Pantawid Pasada Fuel Subsidy program. In addition, there is a Service Contracting program for buses and jeeps on certain routes that requires a 20 percent discount on fares for passengers.
According to PNA, in the Service Contracting scheme, operators and drivers will receive subsidies of 40 to 100 Philippine pesos per kilometer to cover operational losses due to the surge in fuel prices. In return, operators who participate in the program are required to provide a 20 percent fare discount to passengers on covered routes.
This program began this week in Metro Manila. The initial phase was carried out on Commonwealth Avenue, Quezon City, then expanded to Quezon Avenue, España, Zapote, A. Bonifacio, Rizal Avenue, and Marcos Highway before being implemented nationally.
Fuel subsidies will be distributed through accredited gas stations supervised by the Energy Ministry. Meanwhile, the LTFRB is asked to ensure compliance with the tariff discount scheme and will issue a tariff matrix as a guide for passengers.
This tariff reduction applies outside the 20 percent discount that has been given to the elderly and disabled people in accordance with the law.
If implemented nationally, this transportation assistance program is estimated to reach 50 thousand public transportation drivers, 1,000 operators, and around 15 million passengers.
PNA reported that this policy is part of the Philippine government's broader response to the surge in world oil prices due to tensions in the Middle East. Previously, Marcos had declared a national energy emergency to secure and increase fuel supplies.
The Philippine government has also tightened surveillance of fuel sellers to prevent hoarding and excessive profiteering. So far, more than 1,000 complaints have been received through the government's eGov platform.
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