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Alexis Romero - The Philippine Star
April 17, 2026 | 12:00am
Taxi drivers and operators in Baguio receive cash assistance from the city government yesterday to help them cope with surging fuel prices.
Andy Zapata
MANILA, Philippines — Malacañang has ordered transport authorities to work closely with local government units (LGUs) and the interior department to ensure the seamless implementation of measures aimed at helping public utility vehicle (PUV) operators, drivers and commuters cope with the effects of the war in the Middle East.
Executive Secretary Ralph Recto issued the directive as he led a meeting of government agencies last Wednesday to thresh out the details of the implementation of the administration’s transport assistance package.
He was referring to the giving of fuel subsidies for jeepneys and UV Express operators and drivers through the Pantawid Pasada fuel subsidy program and the service contracting program for buses and jeepneys on select routes that will offer 20 percent fare discounts for passengers.
Recto said the Department of Transportation and the Land Transportation Franchising and Regulatory Board have to work closely with the Department of the Interior and Local Government, LGUs and the Department of Energy to make sure that all target beneficiaries are able to avail themselves of the financial support under the initiatives.
Last week, President Marcos announced a fresh set of relief measures for transport workers and commuters, including the rollout of a service contracting program that will provide drivers and operators P40 to P100 per kilometer.
Service contracting
DOTr chief Giovanni Lopez urged local government units to implement their own service contracting program for affected PUV drivers and operators.
The national government is currently offering a net service contracting scheme where drivers still collect fares but the government provides a top-up subsidy or incentive based on the number of trips or mileage, ensuring a stable income for drivers.
At the Kapihan sa Manila Bay forum, Lopez admitted that only 1,000 transport operators and 50,000 drivers will benefit across 825 routes nationwide with the P1 billion budget.
The agency is currently seeking an additional P5 billion to expand the budget till July.
With limited resources, Lopez sought help from LGUs to implement their own service contracting program.
He cited Manila as an example which recently offered free rides to passengers and paying drivers through the number of trips or kilometers traveled through the gross cost contracting program.
“I hope our LGUs will implement their own service contracting programs because they know their routes better. [The DOTr] cannot cover everything,” he said.
Lopez said that they have coordinated with several LGUs on how they can implement their own service contracting program in their respective areas. – Josiah Antonio
