THE Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) are preparing to release fuel subsidies for public utility vehicle (PUV) operators and drivers if global oil prices reach $80 per barrel, officials said, while fare increases remain a possible contingency.
Transportation Secretary Giovanni Lopez said the road transport sector has been instructed to start processing the necessary documentation so that assistance can be distributed immediately once the price threshold is met.
According to him, the government has earmarked P2.5 billion for the subsidy program to cushion the impact of rising fuel costs on the public transport sector.
“What is more interesting right now is the fuel subsidy. I instructed the road sector to start the documentation work, the processing of the fuel subsidy, so that if the threshold of $80 per barrel is met, what we will basically do is to give the subsidy,” Lopez said.
Preparations for fuel subsidy began after President Ferdinand Marcos Jr.’s directive to ensure that aid for PUV operators and drivers is ready amid escalating tensions in the Middle East, which could drive up global oil prices.
At the same time, the LTFRB is monitoring the possibility of provisional fare increases for buses, jeepneys, and other PUVs if diesel prices surge to P60 per liter, LTFRB Chairman Vigor Mendoza said.
While the current diesel price — hovering between P50 and P60 per liter — has not yet reached the threshold for mandatory fare adjustments, sustained increases could prompt action.
“If the price of fuel increases — pump price increases more than P60 per liter — then that becomes the challenging portion for us,” Mendoza said.
He emphasized that non-fare measures, such as fuel subsidies, remain the agency’s first line of response, with fare hikes considered a last resort. “Our first option, of course, would probably be a fuel subsidy. The fare hike is our last option,” he said.
Also, the LTFRB is evaluating pending petitions for fare adjustments to ensure the operational sustainability of transport operators while keeping commuting costs manageable for the public.
Mendoza noted that across-the-board provisional fare increases for buses and jeepneys could be implemented if necessary, saying that the welfare of drivers and the roadworthiness of vehicles would be closely monitored.
“Again, the balancing act between what is needed to sustain the operations of our public transport, as well as what the public can afford,” he said.
