ONLY public transport drivers who are registered voters of Cebu City will be eligible for the city government's fuel subsidy program, Mayor Nestor Archival said Tuesday, March 24, 2026, as the transport sector continues to reel from skyrocketing fuel prices driven by the ongoing conflict in the Middle East.
Archival made the clarification during a meeting with transport leaders where a range of pressing concerns were discussed, including fuel subsidies, the Cebu Bus Rapid Transit (CBRT), and the proposed Local Public Transport Route Plan (LPTRP).
Voter registration as requirement
To qualify for the subsidy, drivers must submit proof of voter registration — either a voter's identification card or an official voter's certification. The requirement is meant to ensure that city funds benefit only Cebu City constituents.
Subsidies will be distributed through operators, who are responsible for paying drivers and shouldering operational costs. Transport groups have been directed to segregate drivers who are Cebu City voters from those who are not. Operators have until Wednesday, March 25, to submit a complete list of their drivers to facilitate the processing of funds.
"The moment we determine the number of drivers, we will know how much we can allocate, as there is a fixed budget," Archival said, adding that the total subsidy amount has yet to be finalized. Funding will come from a supplemental budget to be endorsed by the Cebu City Development Council.
On top of national aid
The City subsidy comes on top of existing national assistance. The Department of Transportation began distributing fuel subsidies nationwide on Tuesday, March 24, with drivers of buses, school transport, taxis, and modern and traditional UV Express units each set to receive P5,000, while operators of buses and modern UV Express units are entitled to P10,000 per unit.
Separately, an estimated P2.5 billion has been collectively allotted for the national fuel subsidy program, with more than 245,000 drivers expected to receive their share through bank accounts or electronic wallets.
Locally, drivers may also receive P5,000 under the Department of Social Welfare and Development's Assistance to Individuals in Crisis Situation (AICS) program, plus P1,500 from the Land Transportation Franchising and Regulatory Board.
A crisis months in the making
The fuel subsidy push in Cebu City has been building for weeks. Rising fuel prices have forced many public transport drivers to park their vehicles and stop working, with some returning their units to operators because daily earnings have fallen below sustainable levels.
Archival first met with representatives of taxi, modern jeepney, and traditional jeepney groups on March 12, 2026, after transport leaders reported that several drivers had already stopped driving their routes due to unmanageable fuel costs.
At the time, Archival warned that if fuel prices continued to climb without government intervention, transport groups might eventually be pushed toward strikes.
Fuel prices in Cebu have increased by 21 to 75 percent since the start of 2026, with fresh hostilities in the Middle East erupting on February 28. As of March 24, diesel has breached the P130 per liter mark.
The numbers behind the crisis
Ellen Maghanoy, chairperson of the Federation of Cebu Transport Cooperatives (FCTC), painted a grim picture of the financial strain on operators. Under their cooperative system, drivers shoulder fuel costs while operators cover only the amount exceeding P80 per liter.
With prices now hitting P120 per liter — and reportedly climbing higher — operators are absorbing roughly P40 per liter beyond the threshold. Since a single unit consumes about 50 liters daily, this translates to approximately P2,000 in daily subsidies per unit, effectively gutting the P3,000 rental fee and leaving operators with only about P1,000 — far less than their monthly amortization of over P2,000, before accounting for maintenance, garage rental, and other operational costs.
Transport holiday averted — for now
Cebu transport groups had initially prepared to join a nationwide transport holiday but decided to suspend their participation after a dialogue with Land Transportation Franchising and Regulatory Board 7 officials, who committed to releasing financial assistance to drivers and set a deadline for the submission of requirements.
Richard Cabucos, chairperson of the United Cebu Transport Operators Association, confirmed that while groups were ready to join the protest, they stood down after the government began processing aid. He noted that operators are now required to submit a list of drivers along with their GCash accounts for direct disbursement, and clarified that only drivers — not conductors — are covered by the subsidy.
Ellen Maghanoy noted, however, that transport groups in other regions, including parts of Luzon, Mindanao, and areas in the Visayas such as Iloilo and Cagayan, were expected to proceed with the transport holiday.
CBRT and LPTRP also tackled
Tuesday's meeting also addressed ongoing complaints about the CBRT. Passengers have raised concerns about loading and unloading areas being located farther from their usual stops. Some operators proposed allowing public utility vehicles to temporarily exit designated lanes to drop off passengers before re-entering. However, Raquel Arce, head of the Cebu City Transportation Office, rejected the proposal, saying it would create confusion and disrupt traffic flow.
Archival said the public is expected to adjust to the new system, while drivers are urged to enforce proper loading and unloading practices. He also noted that some drivers tend to stop midway upon reaching stations rather than proceeding to designated areas, causing congestion — a problem that will be addressed by deploying additional personnel to guide drivers to proper stopping points.
On the LPTRP, which seeks to rationalize transport routes in the city, reactions were mixed: some operators expressed support while others raised concerns over possible route reductions. The plan has already been approved by the LTFRB and is currently at second reading in the Cebu City Council. / CAV