Moving the transport sector forward amid oil price crisis

The worsening global oil price crisis in the aftermath of the Middle East (ME) conflict has once again brought to the fore the lack of efficient mass transport service in the Philippines. Sadly, many of our country’s public transport services still run on fossil fuels. Thus, our country’s public transport sector has always borne the heaviest brunt of every economic crisis that erupts whenever there is disruption of crude oil supply in the world market.

Department of Transportation (DOTr) Secretary Giovanni “Banoy” Lopez conceded that the prevailing oil price crunch unfortunately cuts deeply into the daily earnings of many Filipino drivers and operators of public utility vehicles (PUVs) such as jeepneys and buses. The supervision of the PUVs fall under the Land Transportation Office (LTO) and the Land Transportation Franchising and Regulatory Board (LTFRB), both of which are attached to the DOTr.

At the Kapihan sa Manila Bay forum last Wednesday, Lopez cited President Ferdinand “Bongbong” Marcos Jr. (PBBM) has precisely approved several sets of subsidy programs that would directly and immediately assist PUV drivers and operators to mitigate the impact of the ME oil price crisis on them.

The DOTr secretary is a member of the newly created UPLIFT committee, or Unified Package for Livelihoods, Industry, Food and Transport on the ME conflict that PBBM created last March 24. This was established in the wake of the ME conflict when the President declared a state of national energy emergency in the Philippines under Executive Order (EO) 110.

According to Lopez, the President gave the marching orders to Department of Budget and Management (DBM) Secretary Rolando Toledo to find sources of available funding for these subsidy programs out of the Congress-approved 2026 budget.

“We’re looking at sources of funds, probably at savings identified by the DBM from various agencies of the government. The entire amount is not only for transport but also farmers, fisherfolk,” Lopez pointed out.

“So we’re trying to dissect the available budget and hopefully get the additional sources of funds,” the DOTr secretary stressed.

PBBM announced over the past few days a number of government subsidy programs while withholding action on the proposed temporary suspension or reduction of excise taxes on gasoline and diesel but agreed to suspend excise tax only on cooking gas and kerosene. But PBBM ordered the LTFRB to defer for now its approved fare increases supposed to take effect last March 19 on jeepneys, city/provincial buses, taxi services and transport network vehicle services (TNVS).

The President justified the fare hike deferment as necessary to support commuters as well amid economic challenges. Instead, PBBM ordered the DOTr to expedite fuel subsidies for operators and drivers to help manage soaring operational costs.

For now, Lopez counts on the DBM secretary, who reported to the President “savings” identified from various government agencies, one of which was the Department of Energy (DOE), which was tapped to bankroll the P1.5-billion fuel subsidy program for PUV drivers and operators. Under the DOTr budget this year, Lopez cited, they have set aside P1 billion for the net service contracting program for diesel-fed jeepneys, both modern and traditional, UV Express and buses.

On top of these fuel subsidy programs, Lopez pointed to the Department of Social Welfare and Development (DSWD) which has included PUV drivers and operators as well as tricycle drivers and owners under its Assistance for Individuals in Crisis Situation (AICS) cash subsidy.

To further reduce the rising costs of fuel, Lopez welcomed the private sector initiatives of tollways concessionaires under the supervision of the Toll Regulatory Board (TRB), another attached agency of the DOTr. Specifically, Lopez mentioned the toll discounts at the North Luzon Expressways (NLEX) and South Luzon Expressways (SLEX) extended to Class 1 PUVs, Class 2 public utility buses and Class 3 trucks used for delivery of basic goods. The toll discounts are being given for an initial period of two months, and may be extended subject to review.

Based on the adjusted rates, PUVs may get as much as P47 discount per trip, while trucks may save P72. Discounts are released through rebates, returned to the RFID accounts of PUV and truck drivers on a weekly basis. Lopez estimated private toll operators have so far issued about P20 million in discounts for PUVs under their program.

Lopez conceded the latest ME oil price crisis has taken a heavy toll on our country’s public transport sector, including aviation and shipping, all under the supervision of the DOTr. Heavily dependent on fossil fuels like gasoline and diesel, Lopez admitted the government’s resources are not enough to effectively intervene in mitigating the impact of the escalation of oil prices that hit historic levels to date.

With limited resources, Lopez sought help from local government units (LGUs) to implement perhaps their own version of DOTr’s service contracting program for their respective constituent PUV drivers and operators.

On a positive note, Lopez believed this crisis has added impetus to the DOTr’s ongoing modernization program on land transportation that included the shift to electric vehicles (EVs) in the short-term. “The DOTr is really going to that direction on the long term. We’re going electric, battery or full electric,” Lopez quipped.

But like any other program, Lopez explained, there is really a need for government intervention to enable the shift to EVs for all PUVs. “One idea being floated to help operators do this program is to have a lease-to-own. It’s a good concept but how to do it is what we need to talk about,” he pointed out.

And for medium- and longer-term programs of the DOTr, Lopez highlighted the continuing upgrades on electric-operated train systems like the Metro Rail Transit (MRT) and the Light Rail Transit (LRT) as well as the ongoing construction of the Metro Manila Subway.

“But at this point in time, the DOTr must be more proactive in our organization for our modernization program,” Lopez vowed.

Moving the transport sector forward amid the oil price crisis is a daunting task. But Lopez remains focused on the DOTr goal to modernize.