The Department of Budget and Management (DBM) has secured a substantial budget of 3 billion pesos for a fuel subsidy program aimed at aiding over a million beneficiaries within the transportation sector.
DBM Secretary Amenah Pangandaman has given the green light for the release of this budget, responding to the continuous surge in petroleum product prices.
This allocation aligns with a request from the Department of Transportation (DOTr) and complies with Special Provision No. 7 under the Department of Transportation (DOTR), as stipulated in Republic Act 11936, or the 2023 General Appropriations Act.
This program intends to provide assistance to more than 1.3 million drivers and operators who have been adversely affected by consecutive oil price hikes.
The distribution of funds through the Fuel Subsidy Program will be routed through banking institutions. Furthermore, the Land Transportation Franchising and Regulatory Board (LTFRB) will oversee the utilization of the disbursed funds to ensure their proper allocation.
The Land Bank of the Philippines has been tasked with submitting regular reports to the DOTr and LTFRB to provide transparency regarding the subsidy distribution process.
Recipients of the one-time fuel subsidy will vary depending on the type of vehicle they operate such as the following:
- Modernized Public Utility Jeepney - P10,000
- Minibuses - P6,500
- Taxis - P6,500
- Shuttle Services Taxis - P6,500
- Transport Network Vehicle Services - P6,500
- Tourist Transport Services - P6,500
- School Transport Services - P6,500
- Filcabs - P6,500
- Tricycles - P1,000
- Delivery Services - P1,200
This initiative, following the Memorandum of Agreement framework provided by the DOTr, will funnel funds through the DOTr Office of the Secretary, which will collaborate closely with the LTFRB for seamless execution.
The Land Bank of the Philippines will rely on a comprehensive master list of beneficiaries to facilitate subsidy distribution, adhering to approved modes of payment, processes, and schedules sanctioned by the LTFRB.
