Better than fuel tax suspension: Gov't starts P10/liter subsidy for PUVs
Drivers and operators of diesel-fed public utility vehicles (PUVs) will stand to benefit more from the additional fuel subsidy program than the cancellation of the excise tax on fuel, the Land Transportation and Franchising Regulatory Board (LTFRB) said.
The additional fuel subsidy approved by President Marcos is P10/liter and LTFRB chairman Vigor D. Mendoza II said this is higher compared to the P6/liter that the transport sector stands to benefit if excise tax on fuel is suspended.
“This means that the public transport sector will have bigger benefits from this program and our focus now is to ensure that this will be implemented properly for the benefit of drivers and operators,” said Mendoza.
And commuters will also stand to benefit from this program, according to Mendoza, since the fuel subsidy, coupled with the service contracting, ensure sustainability of public transportation.
The only catch is that compared to excise tax suspension, only the PUV sector will benefit from it.
The national government earlier allocated P1.5 billion for the P10/liter fuel subsidy and Mendoza said the fund was computed to last until July if limited to jeepneys and UV express.
Based on the initial data, around 26,000 jeepneys and UV Express will benefit from the program which started on Tuesday, April 14. The beneficiaries is expected to rise to 33,000 once the jeepneys and UV Express entering Metro Manila from four adjacent provinces are included.
But Mendoza said the program will not be limited to jeepney and UV Express as the instruction of President Marcos is to include as many units.
How it works
Based on the agreement signed by officials from the Department of Transportation (DOTr), the Department of Energy (DOE), the Department of Information and Communications Technology (DICT) and the Landbank, the payment will be directly downloaded to the participating gas stations.
There are around 52 participating gas stations and 14,000 in total nationwide.
Each participating gas station will have an app that is connected to the database of the LTFRB, the holder of the list of the beneficiaries.
Mendoza said only those with valid franchises are listed in the program.
Once the verification is made via the app, the discounted charge will appear and it is the only amount that will be paid by the PUV drivers—the rest will be paid by the government via LandBank.
Based on the program, each PUV unit is allocated with a maximum 150 liters per week—computed based on the average daily consumption of regular jeepneys of 30 liters a day.
Help desks
Anticipating the possible glitches in the implementation, Mendoza said they will set up help desks in as many gas stations to address the concerns of the PUV drivers and operators.
The final guideline is being crafted on the matter.