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DOTr allocates ₱2.5B fuel subsidy for transport drivers amid rising oil prices

The Department of Transportation (DOTr) said it has allocated ₱2.5 billion for a possible fuel subsidy program for transport drivers as pump prices continue to rise due to tensions in the Middle East.

Transportation Secretary Giovanni Lopez said the subsidy will be distributed proportionately depending on fuel consumption among different transport sectors.

“Yung sa fuel subsidy naman po natin which is ₱2.5 billion under DOTr, doon po yung meron pong sinabi natin na proportionate amount,” Lopez said in an interview with local media.

He explained that sectors with higher fuel consumption, such as buses, may receive larger subsidies.

“Kapag mas malaki yung gastos tulad ng bus, mas malaki po yung krudo na kanilang ginagamit, mas malaki naman po yung naibibigay nating subsidiya,” he added.

According to Lopez, the subsidy will be released once global oil prices reach at least $80 per barrel for one calendar month, subject to certification from the Department of Energy (DOE).

“So, kapag yan nagsimula nang pagsirit ng presyo ng langis ng March 1, hintayin natin hanggang March 30,” Lopez said.

While waiting for the fuel subsidy trigger, the Department of Social Welfare and Development (DSWD) is preparing its own ₱5,000 cash aid program for public transport drivers.

The DOTr subsidy will cover transport workers regulated by the Land Transportation Franchising and Regulatory Board (LTFRB), including:
• Bus operators and drivers
• Traditional and modern jeepney operators and drivers
• Taxi drivers
• Transport network vehicle service (TNVS) drivers
• Delivery riders from various platforms
• Tricycle drivers, with beneficiary lists to be provided by local government units

Lopez said transport workers may receive assistance from both the DSWD cash aid program and the DOTr fuel subsidy.

Aside from financial aid for drivers and operators, the DOTr is also planning to roll out free rides under the Libreng Sakay Program to help commuters cope with rising transportation costs.

Under the scheme, the government will compensate transport operators and drivers through service contracting.

The free ride program is expected to be launched nationwide once the Special Allotment Release Order (SARO) is issued by the Department of Budget and Management (DBM).

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