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DOTr to roll out free rides, fuel vouchers
MANILA, Philippines — The Department of Transportation (DOTr) is preparing P3.5 billion in subsidies for free rides to millions of commuters, and to finance part of the fuel costs of public utility vehicles (PUVs).
The DOTr is employing a two-pronged approach in mitigating the impact of rising fuel prices on commuters.
Acting Transportation Secretary Giovanni Lopez asked road sector officials to tap the P1-billion allocation in the 2026 General Appropriations Act (GAA) for the Service Contracting Program (SCP).
This means the DOTr will be rolling out another round of libreng sakay on select bus routes. The DOTr, through the SCP, may sign contracting deals with PUV cooperatives and operators for the delivery of transport services.
In the past, the SCP sponsored the rollout of libreng sakay on the EDSA busway. Lopez wants to activate the program to provide free access to public transport and alleviate the impact of price hikes on commuters.
“We have a service contracting program under the 2026 GAA and I have already instructed the road sector to initiate the release of funds,” Lopez told The STAR.
If the DOTr resumes free rides on the EDSA busway, the program could benefit as many as 183,000 Filipinos daily, based on 2025 ridership.
Further, Lopez said the Land Transportation Franchising and Regulatory Board (LTFRB) is set to release this week the number of beneficiaries for fuel subsidies amounting to P2.5 billion.
Right now, the LTFRB is working with local governments on the latest count of tricycle drivers. The last time that fuel subsidies were issued was in 2023, when about 1.36 million beneficiaries received one-time grants of up to P10,000.
“The LTFRB is still finalizing the numbers because some of the beneficiaries are not under them, like tricycle drivers. Hopefully, we can have a more realistic and accurate estimate (this week),” Lopez said.
The subsidies – to be sourced from the 2025 GAA – can only be released once the Department of Energy (DOE) certifies that Dubai crude oil has averaged $80 a barrel for a month.
Bicol Saro Rep. Terry Ridon, a member of the House committee on transportation, is asking the DOE to issue the certification immediately, raising the risk of price shock in transport services if subsidies are delayed.
As of March 6, Dubai crude oil had jumped to $99.14 per barrel, up by 45 percent from the week prior to the Middle East conflict triggered by US-Israel attacks on Iran.
“Given current market indicators, the (DOE) should not wait for a full month of price monitoring before acting. It should immediately issue a formal certification that international crude oil prices have already breached the $80 per barrel threshold, and prevailing market prices clearly indicate sustained levels above this trigger,” Ridon told The STAR.
The lawmaker appealed to the DOTr to include agri-fisheries transport in the coverage of subsidies. This way, truckers can stagger – if not avert – any increase in the cost of transporting farm products that are later shouldered by consumers.
Diesel to rise over P20 per liter this week
Even with staggered hikes, the overall increase in diesel prices is set to exceed P20 per liter this week, an industry source told The STAR.
After five trading days, the source estimates that diesel could rise by P20.10 to P20.30 per liter, while gasoline may climb by P10 to P10.20 per liter.
These figures may still go higher, as premium and freight costs “can be more than usual” amid escalating tensions in the Middle East, the source said.
Amid uncertainties over the staggered implementation, the DOE has yet to announce any guidance on how it will proceed this week.
Ahead of the scheduled adjustments set to begin tomorrow, gasoline and diesel prices have already increased by P6.70 and P9.40 per liter, respectively, since the start of the year.
Removing oil excise tax may cost government billions
Bureau of Customs (BOC) Commissioner Ariel Nepomuceno yesterday said the government will lose P200 billion to P230 billion in revenues amid plans to remove excise tax on oil products to mitigate the impact of the ongoing Middle East conflict on commodity prices.
In an interview with dzBB, Nepomuceno explained that the revenues from excise tax from petroleum products represent more than 20 percent of the total target collection of the BOC.
“Let’s remember that the BOC’s target collection is P1.0003 trillion, meaning, we’re talking about more than 20 percent being affected by excise tax from our more than P1 trillion collection,” he said.
President Marcos is expected to certify as urgent any measure that will grant him the power to slash the excise tax on oil products.
“As for us at the BOC, our revenue is largely due to taxes and tariffs. We collect around P330 to P410 billion per year from oil products, including VAT (value-added tax) and duties,” Nepomuceno noted.
Marcos has announced a plan to talk to lawmakers to seek authority to lower the excise tax on petroleum products, should Dubai crude exceed $80 per barrel.
“That’s why our government is balancing it because there is a domino effect when we pay too much for the gasoline we use. That’s why this problem requires cooperation, there is no perfect solution, just reducing the negative impact. That’s what will happen there,” Nepomuceno said.
He noted that the country has ample supply of petroleum products good for two months.
“We have the ability to visit the warehouses, the depots of the oil companies, so that we can inform the Department of Energy. I have already given orders to our enforcement units to visit warehouses and depots,” he said. — Brix Lelis, Bella Cariaso
