MANILA – Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman has greenlit the release of P3 billion to support the Fuel Subsidy Program (FSP) aimed at assisting approximately 1.36 million drivers and operators adversely affected by recent fuel price hikes.
Transportation is a critical component of our economy,” stated Sec. Amenah Pangandaman. “President Bongbong Marcos has instructed us to support and not neglect our workers in the transport sector. Hence, we will ensure they receive the necessary assistance from the government.”
The release of these funds, amounting to P3 billion, followed a request from the Department of Transportation (DOTr) and was executed in line with Special Provision No. 7 of the DOTr-OSEC agency-specific budget authorized under Republic Act (RA) No. 11936, commonly referred to as the Fiscal Year (FY) 2023 General Appropriations Act (GAA).
It’s noteworthy that the DBM returned the DOTr’s request on 17 August 2023, initially submitted on 9 August 2023, due to various deficiencies and inconsistencies in the accompanying documents. Among these was the absence of the required guidelines, to be jointly issued by the DOTr, the Department of Energy (DOE), and the DBM, as mandated by SP No. 7 in the FY 2023 DOTr-Office of the Secretary (DOTr-OSEC) Budget.
As a result, on 4 September 2023, the DBM received the officially-resubmitted request from the DOTr, which included all the necessary supporting documents. This package encompassed a copy of the FSP guidelines, dated 31 August 2023, duly-signed by the respective Heads of the DOTr, DBM, DOE, Land Transportation Franchising and Regulatory Board (LTFRB), and Landbank of the Philippines (LBP).
According to 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 FSP will provide a one-time fuel subsidy to the 1.36 million target beneficiaries. The subsidy rates will vary depending on the mode of transportation, as follows:
- 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
- As outlined in the draft Memorandum of Agreement (MOA) presented by the DOTr, the subsidy will be funneled through the DOTr-OSEC, which will then transfer it to the LTFRB for implementation.
The Landbank of the Philippines (LBP), based on the master list of eligible beneficiaries validated by the LTFRB, DICT, DTI, and the DILG, will disburse the subsidies via the agreed-upon payment methods, as instructed by the LTFRB.
The LBP will furnish the DOTr and the LTFRB with the necessary reports regarding the successful crediting of the predetermined amounts, in adherence to the MOA timelines or as required for monitoring purposes.