Distributing fuel subsidies straight to public transport drivers is a step in the right direction. The government really ought to do this after suspending fare increases on account of oil price hikes caused by the Middle East conflict.
And finally, it seems that the government is listening closely to the gripes of drivers who are the hardest hit by the oil crisis since they’re the ones spending for the refueling of their vehicles daily.
It used to be that Pantawid Pasada fuel subsidies initiated under President Noynoy Aquino were received only by operators of public utility vehicles. Sadly indeed, the P450 million deposited in the program’s subsidy cards distributed by the Department of Transportation (DOTr) and the Department of Energy (DOE) in 2011 seemed misdirected.
The same situation happened during the Covid-19 pandemic period, as the Duterte administration simply copy-pasted its predecessor’s program by depositing P2.5 billion to the Pantawid Pasada cards of public transport operators.
Some conscientious operators did share the fuel subsidies to their drivers, but most did not, often resulting in disputes. Agencies like the Land Transportation Franchising and Regulatory Board (LTFRB) could only urge the operators to share their blessings to their drivers, but the plea mostly fell on deaf ears. The operators usually justified their stance on high prices of spare parts, among others.
Fortunately, all of these are starting to change with the current release of assistance straight to the drivers. While funds are still deposited in the Pantawid Pasada cards for operators, fuel subsidies for drivers are also now given not only by the DOTr and LTFRB but also by the Department of Social Welfare and Development.
The administration of President Bongbong Marcos has so far allocated P238 billion worth of assistance for the drivers.
In fact, the assistance is currently compounded as local government units are likewise giving aid to drivers including those of tricycles and habal-habal motorcycles.
In Cebu City, Mayor Nestor Archival is spearheading a P35 million fuel subsidy to aid drivers who are struggling with high fuel costs. Separate moves include the distribution of rice and the granting of P5,000 cash relief for tricycle drivers.
In Cebu Province, meanwhile, Gov. Pam Baricuatro is giving financial and material help to drivers, particularly those in the rural areas, to maintain their livelihood. Ten-kilo sacks of rice are currently being distributed to thousands of jeepney, bus, taxi, van and tricycle drivers as well as conductors and dispatchers.
Cash aids of P3,000 each have also been distributed to habal-habal drivers in Cordova, Tuburan, Dalaguete, Alcoy, Boljoon, Oslob and Balamban, with more towns scheduled soon. The Province is also rolling out “Tabang Pambyahe” fuel subsidies and another P20 million for a “Libreng Sakay” program in tandem with the DOTr.
While other sectors are complaining why public transport drivers are being prioritized for assistance when everyone is affected by the crisis, I understand the government’s position perfectly.
When fuel prices rise, the higher cost ripples through the economy. Public transport fares cause prices to spiral, driving inflation. When this happens, workers will demand higher salaries which further raise costs for businesses, creating more inflation pressure.
This is where subsidies play a role. While they are not guaranteed to stop inflation all throughout, they lessen the initial shock from rising fuel costs that could otherwise lead to higher prices for goods that contribute to economy-wide inflation.
And judging from what’s happening around, it does seem like the government subsidies to stave off fare hikes and prevent runaway inflation are working.
