An amount of P3 billion was released for the fuel subsidy of the transport sector that was affected by unabated oil price hikes, Budget and Management (DBM) Secretary Amenah F. Pangandaman said on Friday.
Pangandaman said that the fund would be for the implementation of the Fuel Subsidy Program (FSP)], which aims to provide assistance to approximately 1.36 million drivers and operators who were affected by the series of oil price hikes.
“Transportation is the lifeblood of our economy. Bilin po sa amin ni President Bongbong Marcos na tulungan at huwag pabayaan ang ating mga manggagawa sa transport sector. Kaya naman po sisiguruhin namin na mabibigyan sila ng nararapat na tulong mula sa gobyerno,” Pangandaman said.
He said that the amount was made upon the request of the Department of Transportation (DOTr) that was based on the Special Provision (SP) No. 7 of the DOTr-OSEC agency-specific budget authorized under Republic Act (RA) No. 11936, otherwise known as the 2023 General Appropriations Act (GAA).
Pangandaman added that the DOTr’s request was made on August 9, 2023 which was returned by the DBM on August 17, 2023, due to the noted deficiencies and inconsistencies in the accompanying supporting documents, including the non-submission of the guidelines to be issued by the DOTr, the Department of Energy (DOE), and the DBM, which was required under SP No. 7 in the FY 2023 DOTr-Office of the Secretary (DOTr-OSEC) Budget.
On September 4, 2023, Pangandaman said the DBM received the hard copy of the officially-resubmitted request from the DOTr accompanied by the required supporting documents, including a copy of the FSP guidelines dated August 31, 2023 that was signed by the respective heads of the DOTr, DBM, DOE, Land Transportation Franchising and Regulatory Board (LTFRB), and Landbank of the Philippines (LBP).
As validated by the LTFRB, in coordination with the Department of Interior and Local Government (DILG), Department of Information and Communications Technology (DICT), and the Department of Trade and Industry (DTI), the 1.36 million target beneficiaries of the FSP will be given a one-time fuel subsidy, with varying rates depending on the applicable mode of transportation, to wit:
- Modernized Public Utility Jeepney (MPUJ): P10,000
- Modernized Utility Vehicle Express (MUVE): P10,000
- Traditional PUJ: P6,500
- Traditional UVE: P6,500
- Public Utility Buses (PUB): P6,500
- 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
He said that the subsidy would be released to the DOTr-OSEC, which shall in turn, fully transfer the same to the LTFRB, as the implementing agency.
Pangandaman said that based on the master list of eligible beneficiaries certified by the LTFRB, DICT, DTI, and the DILG, the LBP would distribute the subsidies through the identified modes of payment, upon receipt of instructions from the LTFRB on the procedures, mechanics, and the agreed schedule.
He said that the LBP would provide the DOTr and the LTFRB the required reports of its successful crediting of the predetermined amounts, in accordance with the timelines provided in the MOA, or as needed, for purposes of monitoring.
