The Government of the Philippines has been preparing a PHP3.5 billion subsidy package to support commuters and public transport operators as fuel prices continue to rise. The Department of Transportation (DOTr) plans to implement the subsidy through free ride programs and fuel assistance for public utility vehicles (PUVs).
Under the initiative, PHP1 billion allocated in the 2026 General Appropriations Act will fund the Service Contracting Program, which allows the government to provide free rides on selected transport routes by contracting services from PUV cooperatives and operators. The program may include another round of free rides on the EDSA busway, potentially benefiting around 183,000 commuters daily based on previous ridership levels.
In addition, the Land Transportation Franchising and Regulatory Board will distribute about PHP2.5 billion in fuel subsidies to transport operators. The program will cover various PUV drivers, including tricycle operators, once the Department of Energy certifies that Dubai crude oil prices have averaged at least USD80 per barrel for one month. The subsidy program is intended to cushion commuters and transport operators from fuel price increases linked to ongoing geopolitical tensions in the Middle East.
