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Manila Bulletin devider Philippines devider National devider Gov't starts process of P2.9B fuel subsidy distribution to trike drivers, delivery riders

Gov't starts process of P2.9B fuel subsidy distribution to trike drivers, delivery riders

Published Aug 7, 2023 04:44 am

The Department of Transportation (DOTr) has started the processing of the roll-out of the P2.95 billion fuel subsidy for public utility vehicles, mostly tricycle drivers, and for delivery service riders across the country. 

DOTr Secretary Jaime Bautista said a total of 1.64 million PUV drivers and operators, along with delivery service riders, are expected to benefit from the cash assistance which was allocated to cushion the impact of a series of big-time oil price hikes during the late 2022 and early 2023. 

Bautista said he had already instructed the Land Transportation Franchising and Regulatory Board (LTFRB) to facilitate and hasten the distribution of cash assistance. 

“We will make sure that the assistance to our PUV drivers will be distributed immediately so they can use it, pay for their fuel and improve their daily income,”Secretary Bautista said.

Citing LTFRB data, Bautista said the cash assistance will mostly benefit tricycle drivers, saying there are around 930,000 trike drivers in their list.

On the other hand, around 150,000 delivery service riders are also expected to receive the one-time cash assistance.

The prioritization of the tricycle drivers and delivery service riders was in response to the concerns raised by the two groups, which said they were also affected by the oil price hikes. 

At the height of the Covid-19 pandemic, jeepney operators and drivers were the priority of the cash assistance package. 

In this year’s cash fuel subsidy roll-out, around 280,000 PUV drivers will receive the one time cash grant from the agency.

How much?

Based on the guideline of the LTFRB, Modern Public Utility Jeepney (MPUJ) and Modern UV Express (MUVE) drivers will receive a one-time P10,000 fuel subsidy while drivers of other modes of transport will receive P6,500.

Tricycle and delivery riders, on the other hand, are set to receive P1,000 and P1,200 assistance, respectively.

The cash assistance for tricycle drivers will be handled by the Department of Interior and Local Government (DILG) since tricycle regulations are under local government units while the Department of Information and Communications Technology (DICT) will assist in the distribution of the subsidy for delivery service riders in coordination with the Department of Trade and Industry (DTI).

The DOTr said both the DICT and the DTI are completing and finalizing the master list of beneficiaries which shall be the basis of the LTFRB in distributing the fuel subsidy. 

The fuel subsidy distribution is considered as timely since oil companies have recently implemented a big-time price increase in their products in the past two weeks. 

Another round of oil price hike will be implemented on Tuesday, Aug 8. 

When and how

In a statement, the DOTr said the Fuel Subsidy Program (FSP) is targeted to be implemented by the end of August once the funds from the Department of Budget and Management (DBM) are released.

“In line with this, the LTFRB and the DOTr are closely coordinating with the DBM for the submission of budgetary documents to ensure expedient release of funds,” the statement read.

“The beneficiaries shall receive the subsidy through their provided accounts (e.g., e-wallet accounts such as GCash and other bank accounts). Should they also have a Pantawid Pamilyang Pilipino Program (4Ps) card, they may likewise use it to receive the fuel subsidy.”

“In case the methods of distribution are not applicable, the delivery service beneficiaries may also claim it through over-the-counter withdrawal to designated Land Bank of the Philippines (LBP) branches,” the DOTr statement emphasized. 

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