Zero allocation for MRT-3 rehab, fuel subsidy under proposed 2026 budget

The proposed P197 billion budget for the Department of Transportation for 2026 has zero allocation for the rehabilitation of Metro Rail Transit-3 and fuel subsidy for public utility vehicle drivers and operators.

DOTr Assistant Secretary for Management and Finance Cecilia Bien made the disclosure Thursday during the presentation of its proposed budget before the House appropriations panel.

“The MRT-3 Rehabilitation Project..this is a continuing project. We proposed a P2.7 billion budget [for this] but nothing was given to us,” Bien said.

The rehabilitation of MRT-3, which runs from North Avenue-Trinoma in Quezon City to EDSA corner Taft station, has been allocated a P1.325 billion funding under the 2025 national budget.

Of the P1.32 billion, P995.6 million was funded by the Japan International Cooperation Agency while the Philippine government pitched in P329.7 million.

“[As for] the fuel subsidy, we proposed P2.5 billion like what we have in 2025, but we were not given any amount,” Bien added.

Later in the hearing, DOTr Acting Secretary Giovanni Lopez said that while the Department of Budget and Management did not grant the P2.5 billion requested for the fuel subsidy of the Pantawid Pasada Program for 2026, the agency still has P2.5 billion unused funding under the Pantawid Pasada Program under the 2025 budget.

“Puwede po natin gamitin itong P2.5 billion [na natira] at ibigay sa LTFRB. Ang triggering factor po kasi niyan, may special provision po yan’, if oil prices reach US $80 per barrel in the world market, then that is the only time we can use that fund [for fuel subsidy],” Lopez said.

“Secondly, we also need to comprehensively evaluate the beneficiaries to ensure that public funds will be used for their intended purpose,” he added.

House Deputy Minority Leader and Akbayan party-list Rep.Percival Cendaña then pressed Lopez if this unused P2.5 billion will be made available soon.

Lopez responded in the affirmative.

“The money is still with us, Mr. Chair, and we are planning to download it to the LTFRB so that it will be obligated already,” Lopez added.

1-Rider party-list Rep. Rodge Gutierrez, however, said waiting for oil prices to climb to as much as US $80 per barrel to implement fuel subsidy is not realistic.

“Oil prices are really high, but the $80 per barrel [before implementing subsidy] is too high. If the standard [price] is too high, then we will really have a hard time implementing this subsidy,” Gutierrez said.

Lopez responded by saying that in the event Congress amends the law for implementing the fuel subsidy, the DOTr will immediately take heed.

“If Congress would see it better to lower it ($80 per barrel), then we will comply,”  he said.

The 2025 national budget provides that the P2.5 billion fuel subsidy to transport sector affected by rising fuel prices will be “used to provide financial assistance/fuel vouchers to qualified public utility vehicle (PUV), taxi, tricycle, and full-time ride hailing and delivery services drivers nationwide."

Protest action

Meanwhile, transport group PISTON staged a rally at the south gate of the House of Representatives to protest DOTr budget. 

PISTON said the DOTr proposed budget “will fast-track the corporatization of public transport and wipe out small operators” with the Public Transport Modernization Program (PTMP).

“Malinaw na ang budget na ito ay para sa mga korporasyon at dayuhan, hindi para sa mga tsuper, operator, at komyuter,” PISTON national president Mody Floranda said in a statement.

(It is clear that this budget is for corporations and foreigners, not for drivers, operators, and commuters.)

“Nawawalan ng hanapbuhay ang mga tsuper at maliliit na operator, nauubusan ng masasakyan ang mga komyuter, habang patuloy nagpapayaman ang mga malalaking korporasyon, bangko, at importer ng sasakyan,” he added.

(Drivers and small operators are losing their jobs, commuters are running out of rides, while big corporations, banks, and vehicle importers continue to get rich.)

During the rally, PISTON deputy secretary general Ruben Baylon said the budget will only benefit cartels and monopoly capitalists.

“Kokondenahin itong budget na ito, mga kasama, dahil kung titignan natin sa mga nagdaang mga administrasyon at nagdaang mga budget, sa kasalukuyan ay halos walang nailalaan sa sektor ng transportasyon,” he said.

(This budget will be condemned because if we look at previous administrations and previous budgets, currently there is almost nothing allocated to the transportation sector.)

“Yung P195B na inilaan sa sektor ng transportasyon ng DOTr ay paghahati-hatian lamang yan ng mga kartel at mga monopolyong kapitalista,” he added.

(The P195B allocated to the transportation sector by the DOTr will only be shared by cartels and monopoly capitalists.)

For his part, PISTON Baclaran’s Cerilo Latorenos said, “Sa serbisyo para sa taong bayan, wala na po (Nothing is allocated to the services for the people)."

PISTON also noted the "glaring failures" of the DOTr including—3.9 million undelivered licenses, hundreds of thousands of missing plates, and a “modernization” program that hit only 3% of its target.

For PISTON, the DOTr is “neglecting people’s needs.”

“Billions are funneled into debt trap railways while the Public Transport Modernization Program (PTMP) is poised to get P1.2 billion, forcing small jeepney operators into debt and bankruptcy,” PISTON said.

“The group reiterates that the PTMP is designed to hand public transport over to big business and foreign vehicle manufacturers,” it added.

Due to this, PISTON called on Congress to carefully scrutinize the budget and implement a genuinely nationalized transport system that serves Filipinos and not corporations.

GMA News Online has sought comment from the DOTr about the matter but the department has yet to provide a statement as of posting time. —AOL, GMA Integrated News