Philippines public transport fuel subsidy starts

Operators of jeepneys and tricycles will get their fuel subsidy starting today.

Deputy presidential spokesperson Abigail Valte said Executive Order 32 aims to cushion the impact of continuing increases in fuel prices.

“It was not really meant to be the long-term solution to the (oil price hike) problem,” she said. “That is why it is called Pantawid Pasada.”

Speaking over state-run radio dzRB, Valte struck down proposals for a cash or rice subsidy in lieu of fuel subsidy to the public transport sector.

“Our target is the greater riding public, to avoid fare hikes,” she said. “That’s the point of the fuel assistance program.”

The EO institutes the Public Transport Assistance program (PTAP), named the Pantawid Pasada program, to initially allot P450 million to assist jeepney and tricycle operators.

It partially subsidizes the average consumption of identified public transport groups with legitimate franchises from the Land Transportation Franchising and Regulatory Board.

The energy department will also be using “smart cards” to ensure the integrity of the program. The EO institutes the Public Transport Assistance program (PTAP), named the Pantawid Pasada program, to initially allot P450 million to assist jeepney and tricycle operators.

It partially subsidizes the average consumption of identified public transport groups with legitimate franchises from the Land Transportation Franchising and Regulatory Board.

The energy department will also be using “smart cards” to ensure the integrity of the program. For tricycles, the PTAP will subsidize a portion of their average consumption, while the remaining portion will be funded by local government units.

After a month of implementation, the DOE will submit a report to the inter-agency Energy Contingency Committee on the status of the PTAP.

It will then prepare a recommendation to President Aquino, who will decide whether to continue the program.

Under EO 32, the initial P450 million will come from the special account in the general fund of the DOE.