Jeepney fuel subsidy pilot starts in Metro Manila

The government began a pilot rollout of a P10-per-liter fuel subsidy for public utility jeepney drivers in Metro Manila on April 14, with 52 accredited gas stations participating. Energy Secretary Sharon Garin said the three-month program will test the system before expanding to other public utility vehicles.

MANILA, Philippines — The government started a pilot program providing a P10-per-liter fuel subsidy for public utility jeepneys in Metro Manila on Tuesday, April 14. Energy Secretary Sharon Garin said the initiative, first announced by President Ferdinand Marcos Jr. last week, initially targets jeepney drivers.

"The system needs to be tested if it will work," Garin told dzBB radio. It will run for one week in Metro Manila before expanding to buses, jeepneys, and transport network vehicle services. Drivers can claim up to 150 liters weekly, saving up to P1,500.

Garin explained the cap prevents abuse, based on average consumption data from the Land Transportation Franchising and Regulatory Board, which estimates 18,000 jeepney drivers will benefit.

The rollout coincides with expected fuel price drops: diesel by at least P20.89 per liter, gasoline by P4.43, and kerosene by P8.50. However, transport group Manibela announced a strike from April 14 to 15, protesting the government's delayed response on suspending fuel taxes. — with reports from Jean Mangaluz and The STAR

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Oil firms confirmed price rollbacks effective 6 a.m. Tuesday, April 14, matching Department of Energy projections: diesel down P20.89 to P23 per liter, gasoline P4.43 to P4.50, and kerosene P8.50. The cuts end surges of over P100 on diesel since late February's Middle East crisis. President Marcos suspended excise taxes on LPG and kerosene, while a jeepney subsidy launches.

The Department of Transportation is preparing P3.5 billion in subsidies for free rides and fuel costs of public utility vehicles to counter rising oil prices due to Middle East tensions. This forms part of a two-pronged approach to ease the impact on commuters. The program is expected to launch soon after certification from the Department of Energy.

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Due to the war in the Middle East, diesel prices in the Philippines are expected to exceed P100 per liter, prompting public utility vehicle drivers to consider other jobs. Jeepney and tricycle drivers like Renie Rabago and Omeng Elardo struggle with rising fuel costs while their earnings remain low. The government offers a one-time P5,000 subsidy to assist them, though some say it is insufficient.

A total of 425 out of 14,485 gas stations nationwide were temporarily closed as of March 27 due to the fuel crisis triggered by the Iran war, according to the Philippine National Police. The Cordillera Administrative Region recorded the highest number at 79, while President Ferdinand Marcos Jr. declared a national energy emergency.

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Following last week's rollbacks, diesel prices are forecast to drop another P17 to P19 per liter and gasoline P2 to P3 per liter starting April 21, potentially taking diesel below P130, as Middle East tensions ease further with a holding ceasefire.

Oil firms in the Philippines announced another fuel price increase effective February 10, marking the fifth straight weekly rise for gasoline, while diesel and kerosene climb for a seventh week.

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