MANILA, Philippines — The Department of Transportation (DOTr), Land Transportation Franchising and Regulatory Board (LTFRB) and Land Bank of the Philippines yesterday signed a tripartite agreement for a P1-billion fuel subsidy to support the transportation sector amid soaring oil prices.
According to Transportation Secretary Arthur Tugade, the memorandum of agreement was signed by the three parties for the downloading of funds for the fuel subsidy.
“This is to lay the framework for the immediate implementation of the program upon receipt of the funding from the Department of Budget and Management,” Tugade said.
He said the budget for the fuel subsidy would be divided among 136,230 qualified public utility vehicle (PUV) drivers nationwide based on the Tax Reform for Acceleration and Inclusion or TRAIN Law.
Last month, the government’s economic team, through the Cabinet-level Development Budget Coordination Committee, committed to transfer P1 billion to the LTFRB for cash grants to PUV drivers to cushion the impact of soaring fuel prices.
The DOTr said the cash grants would be distributed to qualified jeepney drivers in the remaining months of the year.
The beneficiaries will receive the cash grants using the system already established under the Pantawid Pasada program of the LTFRB, according to the DOTR.
Under the program, Landbank will disburse the money straight to the cash cards issued to PUV drivers.