DOTr to launch fuel subsidy program for PUVs

MANILA — The Department of Transportation (DOTr) will launch a fuel voucher program for public utility jeepney (PUJ) operators and drivers this July to cushion the impact of recent oil price and excise tax hikes as a result of the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

The fuel subsidy program will cover around 179,000 PUJs nationwide.

“The subsidy is open for jeepneys with legitimate or valid franchises,” DOTr Public Information Director Godess Hope Libiran told the Philippine News Agency (PNA) Thursday.

The DOTr is working to allocate a budget of PHP977 million to provide a PHP5,000 subsidy to 179,852 legitimate PUJ franchise holders for the initial implementation of the program.

The initial phase will be coordinated with various agencies such as the Department of Energy (DOE), Department of Finance (DOF), Department of Budget and Management (DBM), Land Transportation Franchising and Regulatory Board (LTFRB), and the Landbank of the Philippines (LBP).

Beneficiaries will be using debit cards that will be processed by LBP.

The subsidy program is in accordance with Section 82 of Republic Act 10963 or the TRAIN Law which calls for the provision of fuel vouchers to qualified PUJ franchise holders

“The Fuel Subsidy Program aims to cover 100% of legitimate PUJ units with existing LTFRB franchise covering five years upon execution of the TRAIN Law,” Libiran said.

The DOTr is eyeing to sign a Memorandum of Understanding with the DOE and oil companies to ensure the cooperation of the petroleum industry in the implementation of the program.

The department is also considering to sign a Memorandum of Agreement with the LTFRB and LBP to set the mechanics of the program, card distribution agreements, and financial reporting mechanisms. (Aerol John Pateña/PNA)

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