MANILA, Philippines —The Land Transportation Franchising and Regulatory Board (LTFRB) has begun preparing for the distribution of fuel subsidies to thousands of public utility vehicle (PUV) operators affected by the continuing increase in oil prices due to the conflict in the Middle East.
The preparations are in compliance with the directive of Department of Transportation (DOTr) Secretary Giovanni Lopez who ordered the agency to ensure the subsidy program could be implemented quickly once funds become available.
LTFRB Chairman Vigor Mendoza II said the agency has begun coordinating with relevant government offices and completing documentary requirements to ensure that subsidy funds could be released to beneficiaries once the program receives the go signal.
“Our job is to make sure there is a fast distribution system the moment the funds are available. Secretary Lopez instructed us to fix everything early so the assistance can be distributed right away once the funds are ready,” Mendoza said.
He added that the agency was working to ensure that all operator-beneficiaries possess the necessary cards through which the subsidy would be downloaded via the Land Bank of the Philippines.
Lopez said the national government has earmarked around P2.5 billion for the fuel subsidy program covering drivers and operators in the public transport sector.
Under the subsidy mechanism, financial assistance is triggered once global oil prices reach $80 per barrel in the world market.
Energy analysts have warned that prolonged instability in the Middle East could push oil prices higher, with recent projections indicating that the $80-per-barrel threshold may soon be reached.
Mendoza said the LTFRB has finalized the list of beneficiaries while coordination with partner agencies and stakeholders continues to ensure the program’s readiness.
“We are ready. We have the list, and coordination with other government agencies and stakeholders is ongoing specifically for this purpose,” he said.
The LTFRB chief also said regional directors have been instructed to coordinate with transport groups in their respective areas to facilitate preparations.
The fuel subsidy, Mendoza said, would released as a one-time assistance package designed to offset more than a month of increases in petroleum product prices.
He added that the program was meant to help protect both the public transport sector and commuters from the financial impact of rising fuel costs.
“This is the government’s assurance that it will take care of the public transport sector during this challenge. We will work together for the welfare not only of operators and drivers but also of the commuting public,” Mendoza said.
