PUV subsidy program: What operators and drivers need to know

The Marcos administration is rolling out a subsidy program for public utility vehicle drivers in the coming week to help alleviate the impact of a double-digit oil price surge, driven by the US’ and Israel’s war on Iran, and the continued tensions in the Middle East.

Here’s what you need to know.

How much is the subsidy?

What’s certain is that there will be P5,000 that will be given to public utility drivers beginning March 16.

Who are the beneficiaries?

Tricycle drivers in Metro Manila will be the first beneficiaries of the pilot rollout, to be followed by jeepney drivers and operators, bus drivers, and TNVS drivers in the coming weeks, according to the Department of Social Welfare and Development (DSWD).

Which agency is facilitating the rollout?

DSWD is leading the payout. Secretary Rex Gatchalian said on Wednesday afternoon, March 11, that the agency is coordinating with local governments in Metro Manila, which will provide the tricycle drivers’ list from their regulatory units.

The DSWD said the funds will be sourced from its Assistance to Individuals in Crisis Situations (AICS) budget.

How about ‘fuel’ subsidy?

The DSWD is calling the payout a “cash aid program” instead of fuel subsidy program. Is it just semantics?

The government has previously discussed a fuel subsidy program to be sourced from the 2025 General Appropriations Act (GAA). Getting the funds from the special provision of last year’s national budget, however, may take time because certain conditions have to be met.

As stipulated in the 2025 GAA, the Land Transportation Franchising and Regulatory Board can release the funds two to three days after the Department of Energy issues a certification that the actual average price of the Dubai Crude — a benchmark for oil pricing in most of Asia — has surpassed $80 per barrel.

“The President is coming from the belief that we shouldn’t wait for (the trigger),” Lopez said. “That is why we have appealed to the DSWD.”

If the fuel subsidy program to be sourced from the 2025 GAA pushes through, the assistance to be given to PUV drivers may vary depending on the vehicle.

During the hearing of the House committee on transportation on Wednesday morning, Greg Pua of the Land Transportation Franchising and Regulatory Board said that there is a plan, although not yet final, for modern jeepney drivers to receive P10,000 in fuel subsidy.

“The subsidy of (drivers of) modernized jeepneys might be higher compared to traditional jeepneys,” Greg Pua of the LTFRB said. “Modern jeepneys have higher fuel consumption because of bigger engine and air-conditioning,” he added. – Rappler.com