Fuel discount for PUVs raised to P12 per liter
The government will raise the fuel discount for drivers of passenger jeepneys and UV Express units to P12 per liter starting on Aug. 15, as it extended for an indefinite period the assistance for those affected by higher oil prices because of the Middle East conflict.
The new rate is P2 higher than the P10-per-liter fuel subsidy launched in April, which is capped at 150 liters per week.
“Once implemented, the increased discount is expected to provide drivers with savings of up to P1,800 per week,” Executive Secretary Ralph Recto said in a statement on Wednesday.
The decision to extend the fuel discount for operators and drivers of public utility vehicles (PUVs) was reached during a Cabinet meeting he led in Malacañang on Tuesday, upon the directive of President Marcos.
But there was no confirmation on how much the government will allocate for the P12 fuel discount program and how long it will be implemented. A day before the increase, the Palace said the P10 discount would be in effect until the end of the month.
Lower than LTFRB proposal
A total of P1.5 billion was allocated for the previous program that ran from April to July and covered more than 140,000 jeepney and PUV Express units. Drivers or operators of eligible vehicles could avail of the program in about 1,000 selected gas stations nationwide.
The approved latest fuel discount, however, was lower than the P20 per liter proposed by the Land Transportation Franchising and Regulatory Board (LTFRB). The proposal would require an estimated budget of P4.5 billion as the subsidy would cover all PUVs, not just passenger jeepneys and UV Express units.
The LTFRB had recommended the higher fuel discount for all PUVs as it hears the fare hike petitions filed by different transport groups.
Reacting to the announcement, transport group Manibela renewed its call for a P2 fare increase amid continued oil price hikes.
“We welcome any steps to lighten the burden being carried by jeepney drivers, including the increase in fuel discount starting Aug. 15. But we want to stress that it is not enough and it cannot replace our longtime call for an equitable fare hike,” the group said in a statement.
Temporary relief
“The fuel discount is only a temporary relief, while a reasonable fare will give a long-term livelihood to jeepney drivers and their families,” it added.
Manibela noted that many jeepney drivers are unable to avail themselves of the discount because the digital payment system at some gasoline stations are offline. The number of participating gas stations also remains limited, it said.
“A fare increase is the true, direct form of help to jeepney drivers. It will immediately add to their everyday income and they no longer need to discuss or argue with gasoline stations to get the benefit,” the group stressed.
Manila suggested that aside from a fare hike, the suspension of excise and value-added taxes on petroleum products should also be considered. It also urged the government to look into the implementation of a proper rollback in fuel prices, as well as the repeal or amendment of the Oil Deregulation Law.
During the Cabinet meeting on Tuesday, Recto directed the Department of Social Welfare and Development to ensure that the P12.375-billion Uplift assistance reaches vulnerable sectors, including farmers, fisherfolk, transport workers, construction workers and other low-income earners.
“As expected, our fellow Filipinos continue to feel the effects of the unrest in the Middle East. Work must continue, assistance must continue, and every sector must feel the presence and concern of the government,” he said.
In an earlier statement, President Marcos committed to provide support to Filipinos most affected by the Middle East crisis.
“We will not leave anyone behind during this crisis, especially those in the transportation and agriculture sectors,” he said.
