Gov’t allots P1B for service contracting

The Philippine government has allocated an initial P1 billion for a two-week service contracting program for public utility vehicle (PUV) drivers and operators starting April 15, 2026, with the Department of Transportation (DOTr) seeking an additional P5 billion to extend it until July.

According to DOTr Secretary Giovanni Lopez, the P1-billion initial funding will be sourced from the 2026 budget of the agency for service contracting. The majority, or P800 million, will go to road transport, while P200 million will go to maritime transport.

Lopez said the amount will cover two weeks’ worth of service contracting for 1,000 transport operators across the country. This includes 50,000 units of modern and traditional jeepneys, UV Express, city buses, and EDSA Carousel buses, benefitting some 15 million daily passengers.

Under the program, bus operators and drivers will be paid P100 per kilometer. For the EDSA Busway alone, it covers 50 operators, 500 bus units, and 300,000 passengers daily.

For jeepneys, modern units will be paid P40 per kilometer, while traditional units will be given P30 per kilometer.

There will be 823 routes that will be covered across the nation, 545 of which will be in Metro Manila and Cavite, Laguna, Rizal, as the DOTr said it focused on “filler routes” that connect to other modes of transport such as the railways.

GPS monitoring

Monitoring for the program will be done through global positioning system (GPS), with the government in coordination with GPS providers to sell their products at a lower price of P500 monthly to PUV operators and drivers, a price which the DOTr said would be covered by the service contracting program.

There will also be manual monitoring that will be done by government personnel, but the DOTr encouraged operators and drivers to avail of GPS systems to ensure faster payment from the government.

“We have to be within three to five days, every week po ‘yun, pagkatapos kailangan bayaran talaga. ‘Pag hindi naka-GPS, baka-maantala po kahit papano ‘yung babayaran kasi ‘yung validation, counter validation, and verification, ‘yung bilang po per kilometer,” Lopez said.

(We have to be within three to five days every week. If they do not have GPS, the payment may be delayed because of the validation, counter validation, and verification of the distance traveled per kilometer.)

Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Vigor Mendoza has assured that the service contracting will be round the clock to ensure that there will be available rides during both peak and off-peak hours.

“Actually, it’s the peak that we are concerned of, na dapat magkaroon po tayo ng mga sasakyan during the peak hours, ‘pag pasok ng mga trabahador tsaka ‘pag labas po nila, but we’d like to make sure also that during the off-peak, tuloy tuloy pa rin po ang takbo,” he said in a briefing in Malacañang.

(Actually, it’s the peak that we are concerned about, that we need vehicles during the peak hours when workers are going to and leaving work, but we’d also like to make sure also that during the off peak, operations continue.)

“Dun sa off peak, meron rin tayong insentibo para sa kanila na tuloy tuloy ang kanilang takbo pero ang monitoring natin, sa peak hours talaga, na hindi mawawalan ng sasakyan during the time na papasok at palabas sa mga opisina,” he added.

(During off peak, we will also provide incentives so they keep operating, but our main focus in monitoring will be on peak hours to make sure that there are always vehicles available when people are commuting to and from their offices.)

Fare discount

Commuters will also receive an additional 20% fare discount, on top of the 20% discount already in place for students, senior citizens, and persons with disabilities (PWDs). The new fare matrix is scheduled to be released on Saturday, April 11, 2026.

Lopez said guidelines for the maritime sector are still being drafted by the Maritime Industry Authority (MARINA), the Philippine Ports Authority (PPA), and stakeholders.

As global fuel prices — which dicate local prices as the Philippines imports most of fuel — remaining volatile, Lopez said the DOTr is seeking an additional P5 billion to extend the program.

“Humihingi po kami ng additional P5 billion para lang po mapahaba natin ‘yung programang ito,” he said.

(We are asking for an additional P5 billion to extend this program.)

“‘Yan po ‘yung sabi ng ating Pangulo na kailangan paabutin po natin ito hanggang July kung maaari. Humingi nga po tayo ng karagdagang pondo sa Pangulo, sa DBM, sa econ managers natin, at ako naman po ay kampante na ibibigay ‘yung karagdagang pondo kasi kailangan po talaga natin itong ganitong program,” he added.

(That is what the President said, that we have to extend this program until July if possible. We are asking for additional funds from the President, the DBM, the econ managers, and I am confident that the extra funds will be granted because we really need this kind of program.)

The service contracting program was announced by President Ferdinand “Bongbong” Marcos Jr. on Thursday, as the country continues to feel the impact of the higher global prices due to the conflict in the Middle East.

Local pump prices have been hiked for 15 straight weeks for diesel and kerosene, and 13 for gasoline.

Marcos declared a national energy emergency on March 24, 2026, along with the adoption of a Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) for affected sectors.