Fuel subsidy program for jeepney drivers approved

July 11, 2018

A fuel subsidy program to jeepney drivers coping high prices of fuel was signed Wednesday, Budget Secretary Benjamin Diokno joined Transportation Secretary Art Tugade, Energy Secretary. Alfonso Cusi, Land Transportation Franchising and Regulatory Board Chairman Martin Delgra III, and Landbank President Alex Buenaventura in the signing of a joint memorandum circular. The Pantawid Pasada Program, one of the mitigating measures in the TRAIN Law, will provide a fuel subsidy to 179,852 units or 100 percent of  public utility jeep units with existing LTFRB franchise. The fuel subsidy will cover the increase in fuel expense incurred by jeepney drivers, due to the excise tax on fuel. Mishella Cruz, a spokesperson of the Department of Transportation, said the Pantawid Pasada cards will be released Thursday. A driver can save up to P833 a month on fuel if these vouches are used, said Cruz in a phone interview. Around P 977 million has been allocated in 2018 for the first tranche of the program. The intended beneficiaries will receive a P5,000 subsidy for the six remaining months. Meanwhile, P 3.86 billion is allocated for 2019, where a total of 20,514.82 pesos total fuel subsidy will be granted, or P1,709.57 monthly. “We are hopeful that this program will provide relief to our transport sector, as we all continue to work towards our vision of real change - a better and more inclusive Philippines,” Diokno said. The Department of Transportation is the lead implementer of the program. In his message,  Energy Secretary Alfonso Cusi said: "We called on our partners in the oil industry to grant fuel discounts to public utility vehicles, in addition to their CSR ( corporate social responsibility) programs. This resulted in our MOAs ( memorandum of agreements) with Petron, Shell and Phoenix Petroleum."  DMS