May 26, 2024

The Department of Budget and Management has approved the release of P3 billion for the implementation of the fuel subsidy program (FSP), which stands to benefit about 1.36 million beneficiaries in the transport sector affected by increasing fuel prices.

The DBM’s approval came after the department received last week the official letter of request for the issuance of a Special Allotment Release Order and Notice of Cash Allocation for the Department of Transportation’s FSP.

The DBM said the 1.36 million target FSP beneficiaries will be given a one-time fuel subsidy, with varying rates depending on the applicable mode of transportation.

P10,000 each will be distributed to recipients operating or driving modernized public utility jeepneys and modernized utility vehicle express (UVE).

Beneficiaries using traditional PUJ, traditional UVE, public utility buses, mini buses, taxis, shuttle service taxis, transport network vehicle services, tourist transport services, school transport services, and filcabs will receive P6,500 each.

P1,200 each will be given to delivery services and P1,000 each to tricycles.

The FSP recipients have been identified and validated by the LTFRB, in coordination with the Department of the Interior and Local Government, Department of Information and Communications Technology, and Department of Trade and Industry.

Based on the master list of eligible beneficiaries certified by the LTFRB, DICT, DTI, and DILG, Landbank will distribute the subsidies through the identified modes of payment, upon receipt of instructions from the LTFRB on the procedures, mechanics, and the agreed schedule.

Landbank would provide the DOTr and the LTFRB the required reports of its successful crediting of the predetermined amounts, under the timelines provided in the MOA, or as needed, for purposes of monitoring.

The program aims to bring some relief to the transportation stakeholders who are currently grappling with the repercussions of heightened fuel prices. – PNA