The distribution of fuel subsidies directly to public transport drivers is a positive step by the government, especially after suspending fare increases due to oil price hikes from the Middle East conflict. It appears the government is now heeding the complaints of drivers, who are most affected by the oil crisis as they bear daily refueling costs.
Past Missteps in Fuel Subsidy Distribution
Previously, Pantawid Pasada fuel subsidies, initiated under President Noynoy Aquino, were only given to public utility vehicle operators. In 2011, P450 million was deposited into subsidy cards managed by the Department of Transportation (DOTr) and Department of Energy (DOE), but the aid seemed misdirected. Similarly, during the Covid-19 pandemic, the Duterte administration simply replicated the program by depositing P2.5 billion into operators' Pantawid Pasada cards.
While some operators shared the subsidies with their drivers, most did not, leading to disputes. The Land Transportation Franchising and Regulatory Board (LTFRB) could only urge operators to share, but often to no avail, with operators citing high spare parts costs.
Shift to Direct Driver Assistance
Fortunately, this is changing. The current administration under President Bongbong Marcos has allocated P238 billion in assistance for drivers. Funds are still deposited in operators' Pantawid Pasada cards, but fuel subsidies are now also given directly to drivers by the DOTr, LTFRB, and the Department of Social Welfare and Development. Local government units are also providing aid to drivers, including tricycle and habal-habal motorcycle drivers.
Local Initiatives in Cebu
In Cebu City, Mayor Nestor Archival leads a P35 million fuel subsidy to help drivers cope with high fuel costs. Separate initiatives include rice distribution and P5,000 cash relief for tricycle drivers. In Cebu Province, Governor Pam Baricuatro provides financial and material help to rural drivers. Ten-kilogram sacks of rice are being distributed to thousands of jeepney, bus, taxi, van, and tricycle drivers, as well as conductors and dispatchers. Cash aid of P3,000 each has been given to habal-habal drivers in Cordova, Tuburan, Dalaguete, Alcoy, Boljoon, Oslob, and Balamban, with more towns scheduled. The province is also rolling out "Tabang Pambyahe" fuel subsidies and a P20 million "Libreng Sakay" program in partnership with the DOTr.
Why Prioritize Public Transport Drivers?
Some sectors question why public transport drivers are prioritized when everyone is affected by the crisis. However, the government's position is clear: when fuel prices rise, higher costs ripple through the economy. Public transport fares increase, driving inflation. Workers then demand higher salaries, further raising business costs and creating more inflationary pressure.
Subsidies help lessen the initial shock from rising fuel costs, preventing a spiral of price increases. By staving off fare hikes, the government aims to prevent runaway inflation. Based on current trends, these subsidies appear to be working.
