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 Marcos orders P10/liter fuel subsidy for PUVs











 Marcos orders P10/liter fuel subsidy for PUVs



MANILA, Philippines — Drivers and operators of public utility vehicles (PUVs) will make a weekly savings of P1,500 for three months under a new government subsidy ordered by President Ferdinand Marcos Jr. on Thursday.


Marcos said in a video statement that the P10-per-liter fuel subsidy for PUVs would alleviate the impact on transport workers of the soaring fuel prices triggered by the war in the Middle East.

The president said the fuel subsidy would be capped at 150 liters per week and would be implemented for three months starting next week for a total savings of P18,000.


It wasn’t clear from the president’s statement what types of PUVs would benefit from the subsidy. In the Philippine transport system, PUVs include buses, jeepneys, UV Express, taxis and ride-hailing vehicles.


According to jeepney drivers, they usually consume about 30 liters of diesel per day.

The fuel subsidy program will only be implemented by gasoline stations that are approved and monitored by the Department of Energy (DOE).


According to Marcos, the first recipients of the subsidy are the PUVs plying major roads in Metro Manila, starting with those on Commonwealth Avenue in Quezon City.


It will then be expanded “in the following days” to PUVs servicing Quezon Avenue, Alabang-Zapote Road, A. Bonifacio Avenue, Rizal Avenue, and Marcos Highway, before being rolled out to other parts of the country.


The president said the subsidy would not only address transport costs but also prevent increases in the prices of food and other basic goods.


The Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board have yet to release the guidelines on how qualified PUV drivers may avail of the fuel subsidy in selected gasoline stations.


The subsidy follows the five weeks of double-digit hikes in fuel prices, with diesel, the main fuel for buses and jeepneys, topping P170 per liter on Tuesday this week.


The subsidy is separate from the DOTr’s one-time fuel subsidy, which ranges from P1,500 to P10,000, to PUV drivers and operators, and also from the P5,000 cash relief assistance provided by the Department of Social Welfare and Development (DSWD) for transport workers.


The DOTr’s subsidy is for buses, jeepneys, UV Express vehicles, taxis, and transportation network vehicle services (TNVS). The DSWD cash assistance goes to tricycles, delivery riders, motorcycle taxis, in addition to the PUVs covered by the DOTr.


In his statement, the president said that the DOTr would implement a nationwide separate service contracting program for PUVs starting April 15. It will cover around 50,000 PUVs and 1,000 operators, and benefit up to 15 million passengers.


Under the scheme, drivers and operators of contracted PUVs shall be paid P40 to P100 per kilometer, on top of their regular income.


The participating PUVs will be monitored through GPS to ensure that they make actual trips and services are properly delivered, Marcos said. Commuters will have a 20-percent discount on their fares, he said.


P3.50 rollback possible


A local oil industry source told the Inquirer on Thursday that fuel prices in the country could fall by as much as P3.50 per liter next week, but the potential cut wasn’t guaranteed due to the shaky Middle East ceasefire announced on Wednesday.


The source, who had made reliable predictions of price hikes since the start of the US-Israel war on Iran, told the Inquirer that diesel prices could fall by P2.50 to P3.50 per liter after topping P170 per liter last Tuesday. There may be no price movement for gasoline, or just a drop of about P1 per liter, he said.


The source based his estimates on the average over the past three days of the Mean of Platts Singapore, the key pricing benchmark for refined petroleum products.


Before the ceasefire, global benchmark Brent crude stood at $109 per barrel. The figure immediately slid below $100 per barrel following the announcement of the two-week ceasefire on Wednesday.


Industry players interviewed by the Inquirer said that while bombing attacks subsided, helping cool price pressures, uncertainties in the market would likely continue.


Local prices of diesel have already soared by as much as P100 per liter. For April 7 to 13, fuel retailers imposed another wave of massive hikes, ranging from P17.95 to P19.80 per liter. Gasoline price hikes hit P4.90 to P5.90.


US President Donald Trump said they had agreed to a two-week ceasefire on the condition that the Strait of Hormuz would be opened.


Following the ceasefire announcement, the first ship movements in the Strait of Hormuz were recorded, according to real-time ship tracking company MarineTraffic.


However, hours after the ceasefire was announced, Israel continued bombarding the pro-Iranian Hezbollah militant group in Lebanon, striking dense commercial and residential areas of Beirut without warning. In response, Iran again closed the Strait.


Negotiations for an agreement to end the conflict have been set for Friday in Islamabad, the capital of Pakistan, which brokered the ceasefire.


Limited relief


In Manila, business groups warned that the two-week window offered only limited relief unless the government moved swiftly to secure supplies and contain costs.


In a statement on Thursday, the Philippine Exporters Confederation Inc. (Philexport) said the reprieve was only temporary.


Philexport President Sergio Ortiz-Luis Jr. said that the global supply chains remained vulnerable, with any renewed disruption likely to trigger another spike in shipping costs due to route diversions and surcharges.


“Exporters are particularly concerned about the unpredictability of freight rates and delivery timelines, which directly impact our competitiveness in the global market,” Ortiz-Luis said.


For this reason, he urged economic managers to act decisively within the narrow window.


“This includes closely monitoring fuel price movements, exploring targeted support measures for affected sectors, and strengthening engagement with international partners to ensure the continued flow of trade,” Ortiz-Luis said.


Critical opportunity


Philippine Chamber of Commerce and Industry President Ferdinand Ferrer echoed his call, saying the brief reopening of the Strait presents a critical opportunity to stabilize the supply of vital imports and ease price pressures at home.


“We need to buffer stock for any possible disruptions,” Ferrer said.


Marcos has vowed that the government would take “full advantage” of the ceasefire to secure petroleum supplies, ensure the continued flow of essential goods, and bring Filipino workers trapped in the Middle East back to safety.


Patrick Ronas, president of the Association of International Shipping Lines, told a Senate hearing on Wednesday that around 130 container vessels were “trapped” in the Strait.


According to Ronas, cargo vessels, including those carrying Philippine exports, are received all around the Strait, but due to war risks, they are instead discharged just before the strait at Khor Fakkan in the United Arab Emirates.


“Once containers are dropped to the area, they will now have to be trucked to the destinations all over the Middle East,” Ronas added. —With a report from Keith Clores and Inquirer Research /atm

 





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