DOTr: Franchise consolidation not required in receiving fuel subsidy

Public utility vehicle (PUV) operators and drivers who have not yet joined or formed a cooperative through franchise consolidation under the PUV Modernization Program are entitled to receive fuel subsidy from the government to ease their burden amid the spike in fuel prices due to the Iran-Israel conflict in the Middle East, the Department of Transportation (DOTr) said Tuesday.

“Hindi kailangang consolidated na ang mga driver o operator para makatanggap ng fuel subsidy. Gusto ng pamahalaang maging inklusibo ang programa lalo't buong sektor ay mararamdaman ang epekto ng pagtaas ng krudo —consolidated man o hindi,” the DOTr said in a statement.

(It is not a prerequisite for a driver or operator to be consolidated to receive fuel subsidy. The government wants to make the program inclusive since the entire sector will bear the brunt of the hike in crude prices —consolidated or not.)

Fuel subsidy

The DOTr earlier said it is looking to immediately release the fuel subsidy for operators and drivers of public utility vehicles when a sizeable oil price hike takes effect in the country.

The fuel subsidy will be released through the Land Transportation Franchising and Regulatory Board (LTFRB), with guidelines now being finalized.

Under the 2025 General Appropriations Act, the P2.5 billion budget allocated for the public transport sector’s fuel subsidy will be released once the average price of crude oil breaches the $80 per barrel threshold. 

As of June 23, the average price of Dubai crude oil stands at $75.16 per barrel, according to the Department of Energy (DOE).

The DOTr said, along with the LTFRB, it is ready to distribute the fuel subsidy to PUV drivers and operators in accordance with the directive of President Ferdinand Marcos Jr. to immediately ease the burden of sectors to be affected by sudden spikes in fuel prices.

Under the previous “Pantawid Pasada”  program, operators and drivers of Modern Public Utility Jeepney (MPUJ) and Modern UV Express (MUVE) received P10,500, while traditional PUJs, UV Express, Minibus, Public Utility Bus received P5,000.

Those in the Transportation Network Vehicle Service (TNVS), Taxi, Tourist Transport Services, Shuttle Services, School Transport were entitled to a P4,500 fuel subsidy.

Delivery services riders and tricycle drivers were granted P2,500 and P1,100 subsidies, respectively.

Marcos, last Wednesday, said fuel subsidies would be given as oil prices are expected to rise given the heightened tensions between Israel and Iran.

“Kasalukuyang nakikipag-ugnayan ang DOTr at LTFRB sa iban ahensiya ng pamahalaan gaya ng Department of Energy (DOE), Department of Interior and Local Government (DILG), Department of Information and Communications Technology (DICT), at Landbank of the Philippines (LBP) upang mapabilis ang pamamahagi ng ayuda para sa mga driver at operator,” the Transportation Department said.

(The DOTr and LTFRB are currently in coordination with other agencies such as the Department of Energy, Department of Interior and Local Government (DILG), Department of Information and Communications Technology (DICT), at Landbank of the Philippines (LBP) to fast track the disbursement of the fuel subsidy for drivers and operators.)

“Inaasahang ilalabas ang subsidiya sa lalong madaling panahon ayon sa utos ng Pangulo na madaliin ang distribution nito,” it said.

(The fuel subsidy will be released as soon as possible pursuant to the President’s order to fast track its disbursement.)

To ease the burden of motorists, fuel retailers have agreed to stagger the big-time hike in petroleum prices. 

Major petroleum firms hiked the prices per liter of gasoline by P1.75, diesel by P2.60, and kerosene by P2.40, effective 6 a.m. on Tuesday, June 24, 2025.

The same price hikes will be implemented at 6 a.m. on Thursday, June 26, reflecting the second tranche of adjustments.

Apart from the P2.5 billion fuel subsidy for the public transport sector, the 2025 national budget also allocated P150 million in fuel subsidy for farm and fisheries sectors at P75 million each once the crude oil price breaches the threshold. — RSJ, GMA Inegrated News