DOTr: ₱1.5B subsidy for transport sector released

At least P1.5 billion relief assistance has been distributed to the transport sector by the Department of Transportation (DOTr) amid the increasing price of fuel.

In a statement on Saturday, DOTr Acting Secretary Giovanni Lopez said that the distribution aims to urge qualified drivers and operators across the country to participate in the government’s Service Contracting Program (SCP), where the department expects to reach at least 19,000 enrollees on Monday.

Sec. Lopez also added that the qualified transport operators were reached due to the improved information campaign.

The Land Transportation Franchising and Regulatory Board (LTFRB) has been instructed by the Sec. Lopez to guide the qualifiers that are not yet enrolled under the SCP within 24 hours.

The SCP was launched last April 15 due to a lack of speedy onboarding process for drivers and operators.

Through the SCP, the government implements a tiered subsidy system that compensates public transport operators based on the distance traveled.

Traditional jeepneys will receive P30 per kilometer, while modern jeepneys are granted a higher rate of P40 per kilometer to support modernization efforts. Large bus units will receive the highest allocation at P100 per kilometer to account for their higher operational costs.