The Philippine government will implement a nationwide transport assistance package starting April 15, anchored on fare discounts and fuel subsidies, as it moves to cushion the impact of rising oil prices on commuters and operators.

President Ferdinand R. Marcos Jr. announced on Thursday a minimum 20% fare discount for passengers alongside a PHP 10-per-liter fuel subsidy for public utility vehicles (PUVs), capped at 150 liters per week for three months, starting April 15.

The measures form part of the government’s response to continued fuel price pressures linked to developments in the Middle East, discussed during a meeting of the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) Committee.

The Department of Transportation’s (DOTr) Service Contracting Program will compensate drivers and operators on a per-kilometer basis while enabling reduced fares for commuters.

“Sa ilalim ng programang ito, babayaran namin ang ating mga operator at driver ng mula PHP 40 hanggang PHP 100 kada kilometro. Dagdag ito sa kanilang kita mula sa pamasahe,” the President said. (“Under this program, we will pay our operators and drivers from PHP 40 to PHp 100 per kilometer. This is on top of their income from fares.”)

The government estimates the program will cover around 50,000 PUVs, 1,000 operators, and up to 15 million passengers nationwide. 

The discounted fares will be implemented on routes designed to connect with rail systems and major bus corridors, aimed at improving travel efficiency while lowering commuter costs.

Operationally, the service contracting scheme will run during off-peak hours to ensure transport availability beyond rush periods, with GPS monitoring required for participating units.

The fuel subsidy component will be implemented through accredited gasoline stations monitored by the Department of Energy (DOE) to prevent misuse.

“Hindi pa tayo titigil doon. Magpapatupad tayo ng PHP 10 kada litro na bawas para sa public utility vehicle na may maximum na 150 liters kada linggo sa loob ng tatlong buwan,” the President said. (“We will not stop there. We will implement a PHP 10 per liter discount for public utility vehicles, with a maximum of 150 liters per week for three months.”)

The fuel subsidy will only be implemented at legitimate gasoline stations approved and monitored by the Department of Energy to ensure it goes to the right beneficiaries and is not abused, Marcos added.

The initial rollout will begin in the National Capital Region next week, starting along Commonwealth Avenue before expanding to other major corridors including Quezon Avenue, España, Zapote, A. Bonifacio, Rizal Avenue, and Marcos Highway, ahead of a nationwide implementation.

Officials said the combined fare discounts and fuel subsidies are intended not only to ease transport costs but also to help contain broader inflationary pressures, particularly on food and essential goods.

The move comes as energy stakeholders continue to monitor the pass-through effects of global oil price volatility on domestic transport and logistics costs.

Will these fare discounts and fuel subsidies materially ease transport costs and inflation pressures, or are more structural interventions needed?

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