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.
The Department of Transportation (DOTr) is preparing P3.5 billion in subsidies for free rides to millions of commuters and to cover part of the fuel costs for public utility vehicles (PUVs). Acting Transportation Secretary Giovanni Lopez directed the use of a P1 billion allocation from the 2026 General Appropriations Act for the Service Contracting Program (SCP), which will enable another round of free rides on select bus routes, including the EDSA busway.
"We have a service contracting program under the 2026 GAA and I have already instructed the road sector to initiate the release of funds," Lopez told The STAR. Based on 2025 ridership, the program could benefit up to 183,000 Filipinos daily.
Meanwhile, the Land Transportation Franchising and Regulatory Board (LTFRB) is set to release details this week on P2.5 billion in fuel subsidies, including for tricycle drivers, in coordination with local governments. In 2023, about 1.36 million beneficiaries received one-time grants of up to P10,000. These subsidies, from the 2025 GAA, can only be disbursed after the Department of Energy certifies that Dubai crude oil has averaged $80 per barrel for a month. As of March 6, it reached $99.14 per barrel, a 45 percent jump from the week before the Middle East conflict triggered by US-Israel attacks on Iran.
Bicol Saro Rep. Terry Ridon urged the DOE to issue the certification immediately to prevent price shocks in transport fares. "Given current market indicators, the (DOE) should not wait for a full month of price monitoring before acting," he told The STAR. He also called for including agri-fisheries transport in the subsidies to avoid increases in the cost of farm products passed to consumers.
Additionally, diesel prices are projected to rise by over P20 per liter this week, with gasoline up by P10. Bureau of Customs Commissioner Ariel Nepomuceno stated that removing the oil excise tax could cost the government P200 to P230 billion in revenues. President Marcos plans to seek legislative authority to reduce the tax if Dubai crude exceeds $80 per barrel. The country has sufficient petroleum supplies for two months, according to the BOC.
