Cebu modern jeepneys face collapse as fuel prices soar

Cebu modern jeepneys face collapse as fuel prices soar
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CEBU’S public transport system is nearing a major disruption as rising fuel prices and declining passenger demand force nearly half of the city’s modernized jeepneys off the road.

What began as a plan to improve safety and efficiency has turned into a struggle for survival, with operating costs now exceeding revenues. Several transport cooperatives are considering suspending operations.

Drivers struggle to survive

Ellen Maghanoy, president of the Cebu Federation of Transport Cooperatives, said drivers previously earned between P1,000 and P1,500 daily after expenses.

Now, some take home less than P200 — or nothing at all.

The number of operating modern jeepneys has dropped from about 1,000 units to around 600.

"The time will come when there will be transport cooperatives that will no longer continue their operations," Maghanoy said Tuesday, April 7, 2026.

Why the modern fleet is stalling

The crisis is driven by several factors:

  • Fuel costs: Tensions in the Middle East have disrupted oil supply, pushing diesel prices higher and straining the boundary system.

  • Loan obligations: Cooperatives continue to pay loans for modern units.

  • Weak demand: Fewer commuters, partly due to remote work, have reduced ridership.

In some cases, such as Fitam Transport, only 40 of 120 units remain operational. Some drivers have left the sector and returned to their home provinces.

Efforts to stay on the road

Some cooperatives have introduced temporary measures to cushion the impact.

The El Pardo Transport Cooperative has provided a P30-per-liter fuel subsidy and reduced daily boundary fees from P3,000 to between P1,000 and P1,500.

Route-sharing has also been implemented, with units reassigned to busier routes such as Bulacao to SM.

Call for government action

During a speech on April 7, Councilor Joel Garganera highlighted the impact of rising fuel costs on workers and called for immediate intervention.

Proposals include:

  • Releasing the P5,000 fuel subsidy for drivers and P10,000 for operators

  • Imposing a fuel price cap of P55 per liter

  • Promoting electric vehicles

Transport leaders warned that without government support, Cebu could face reduced mobility and unreliable public transport as cooperatives move closer to suspending operations.

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