LTFRB Eyes Expansion, Increase of Fuel Subsidies for PUVs Amid Oil Price Hikes

MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) is planning to expand and increase fuel discounts for the public utility vehicle (PUV) sector in response to a series of new oil price hikes. Transport Secretary Giovanni Lopez has instructed the agency to hold discussions on the proposed initiatives. According to LTFRB Chairperson Vigor Mendoza II, "Increasing and expanding the fuel discount is the most logical and practical measure in the middle of the uncertainty on the situation in the Middle East. This will be factored in the ongoing discussions." He noted that President Ferdinand Marcos Jr. had previously ordered a P10-per-liter fuel subsidy for PUVs last April amid tensions in the Middle East that significantly affected oil prices. The LTFRB stated that over 87,000 PUVs have already benefited from this program, with more than 143,000 PUVs listed in its system. However, Mendoza acknowledged that expanding and increasing fuel subsidies would require substantial budgets. The agency is currently discussing and reviewing this proposal, alongside fare adjustment petitions. "We are looking into this proposal as the last option because the discussions on the matter are ongoing, and these discussions include public consultations with stakeholders nationwide," Mendoza added. A transport group, Manibela, recently staged a two-day transport strike from July 22 to 23 to protest oil price hikes and call for fare increases. The PUV sector in the Philippines is crucial for the daily commutes of a large portion of the population. Fluctuations in fuel prices can directly impact fares, potentially straining household budgets. The LTFRB's consideration of expanded subsidies is seen as a measure to mitigate these effects on public life. However, challenges remain regarding the financial sustainability of such programs and ensuring their effective distribution to eligible PUVs. In terms of Japan-Philippines relations, the economic stability of the Philippines could indirectly influence Japanese investments and economic cooperation.