Contrary to some opinions saying that it was a waste of time, President Bongbong Marcos’ fifth State of the Nation Address (Sona) last Monday, July 27, 2026, was loaded with pride, optimism and hope for Filipinos.
One sector that stands to benefit from a program highlighted by the President’s Sona is the sector on public transportation, primarily through the Service Contracting Program (SCP) for public utility jeepneys. This is aimed at providing direct financial support and stable income for drivers and operators while helping public transportation cope with global oil price increases.
In previous years, the SCP has been instrumental in assisting public transport operators and drivers to withstand huge challenges such as the Covid-19 pandemic. Also popularly known as Pantawid Pasada, the program which started with subsidies made available through ATM cards has been reinforced with other forms of assistance such as fuel discounts and food packages.
The SCP’s initial budget during its nationwide rollout for the first half of the current year totaled P630 million, covering over 1,000 operators and 16,400 public utility vehicles in more than 820 routes. More than 115 million commuters benefited from the program either via Libreng Sakay subsidies during peak passenger hours or through fare discounts.
The figure, however, appears lower than the P1.5 to P5 billion originally requested by Department of Transportation (DOTr) Secretary Giovanni Lopez and Land Transportation Franchising and Regulatory Board Chairman Vigor Mendoza II. A huge unexpended amount could only mean that a continued SCP implementation for the rest of the year would definitely be in order.
In fact, the SCP will be expanded to include public utility buses here in Cebu Province. Dubbed as Tabang Pangbyahe, the program that will be funded initially with P20 million from the DOTr will involve public utility buses on two main corridors: the northern route from Cebu IT Park to Danao City and the southern route from the Cebu South Bus Terminal to Sibonga.
Gov. Pamela Baricuatro will pioneer the program. After Cebu’s rollout of Tabang Pangbyahe, Mayor Benjamin Magalong of Baguio City in Benguet Province and Mayor Leni Robredo of Naga City in Bicol Province are scheduled to replicate it in their respective turfs, also with funding assistance from the DOTr.
President Marcos’ focus on helping public transport players is understandable. The sector, after all, is the hardest hit by the global oil crunch brought about by the Middle East conflict between Israel and the United States on the one hand and Iran on the other. Allowing jeepney and bus fares to increase will subsequently cause prices of basic commodities to spike, ultimately paving the way for runaway inflation.
Unable to make public transportation a fundamental public service funded by taxes, the Philippines is a country that has allowed the private sector to operate it as a business. To help the industry survive, the government thus deems it necessary to assist it during hard times.
Worldwide, Luxembourg is the only country that has made public transportation free to all its commuters. Other countries like The Netherlands, Malta, Romania and Estonia also offer free public transport at varying forms and degrees to their citizens or some sectors of it, such as university students.
Until our country can afford to make public transportation free to all Filipinos, however, we will just have to welcome and thank government efforts such as the SCP that President Marcos highlighted in his recent Sona.