STRICT WARNING ISSUED: Fuel subsidy must be used exclusively for fuel purchase

The Land Transportation Franchising and Regulatory Board Region 6 reminds transport beneficiaries that the fuel subsidy must be used solely for the purchase of fuel. Beneficiaries who will use the subsidy card for other purposes may face serious consequences. PN PHOTO
The Land Transportation Franchising and Regulatory Board Region 6 reminds transport beneficiaries that the fuel subsidy must be used solely for the purchase of fuel. Beneficiaries who will use the subsidy card for other purposes may face serious consequences. PN PHOTO

ILOILO City – As the government kick-started the distribution of a one-time fuel subsidy to public utility vehicle (PUV) operators in Western Visayas, the Land Transportation Franchising and Regulatory Board (LTFRB) Region 6 emphasized the stringent guidelines on the usage of the subsidy.

Operators of traditional and modernized jeepneys, UV Express, taxis, and other transport beneficiaries are being reminded that these funds are specifically allocated to mitigate the impact of soaring fuel prices and must be used solely for the purchase of fuel, said Atty. Salvador Altura, legal counsel of LTFRB Region 6.

Following Memorandum Circular No. 2023-038 issued by LTFRB chairman Atty. Toefilo Guadiz III, the stipulations clearly state that beneficiaries using the fuel subsidy card for other purposes, such as cash withdrawals from automated teller machines or purchases unrelated to fuel, may face serious consequences.

Not only could the card be blocked, but their account might also be closed, and the beneficiary might be blacklisted from receiving future subsidies.

Altura highlighted previous issues, noting, “Most of the complaints the LTFRB-6 previously received were: operators did not use the money to purchase fuel or drivers did not receive their share.”

He appealed to the beneficiaries, “Palihog lang, as early as possible, i-claim na ninyo and gamiton sa katuyoan. Ginahatag ina para ma-ibitaran ang damo nga reklamo halin sa inyo drivers nga wala ginagamit magbakal sang fuel contrary to the purpose of the subsidy.”

The memorandum further details the penalty for violations. Operators who prevent their authorized drivers from using the fuel card for its intended purpose will be deemed in violation.

Such incidents, if reported by the drivers, will be taken seriously by the board, leading to potential fines and sanctions as specified under Department of Transportation (DOTr) Joint Administrative Order No. 2014-01.

The entire fuel subsidy initiative is an expansive endeavor with an estimated 1.36 million beneficiaries across the country. With such a large-scale rollout, the strict implementation of guidelines ensures that the funds serve their true purpose – providing relief against fuel price hikes.

Distribution started last week

PUV operators (such as traditional and modernized jeepneys, UV Express, taxis, and other transport beneficiaries) began receiving their one-time fuel subsidy last week.

First to avail themselves of the subsidy in the region were operators with existing and active Fuel Subsidy Prepaid and Pantawid Pasada Program cards.

“Iban ya nga nadula nila ang card or new applicants, just like those nga bag-o lang natagaan sang Certificate of Public Convenience (CPC) like sa modernized [jeepneys], so waay pa na sila kay dapat i-process pa nila,” Altura said.

Around P10,000 each are being distributed to modern PUJ and modern UV Express drivers, while P6,5000 each are given to drivers of other modes of transport.

Coverage

Memorandum Circular No. 2023-038 also states that the fuel subsidy includes transport groups within the jurisdiction of LTFRB and those under the national government agencies such as the Department of Interior and Local Government (DILG), Department of Trade and Industry (DTI) and Department of Information and Communications Technology (DICT).

Here are the transport beneficiaries within the jurisdiction of the LTFRB and with valid CPC or provisional authority:

* public utility jeepney (PUJ)

* UV Express service

* mini-bus service

* public utility bus (PUB) service

* shuttle service

* FilCab services

* taxi service

* tourist transport service

* school transport service

* transportation network vehicle service

For tricycles and delivery services, which are outside the LTFRB jurisdiction, Altura said he is yet to know which agencies should release the subsidy.

“Considering that the purpose of the project is to mitigate the impact of fuel price hikes, all other authorized denominations that are non-fuel powered, i.e., electric, LPG, and CNG, are deemed excluded from the project,” the memorandum circular further stated.

In the region, Altura said P93 million was allocated for the beneficiaries under LTFRB-6, not including tricycles and delivery services.

“Based sa amount multiplied by the number of units, daw P93 million ang allocation sang Region 6. Ang P93 million nga ina sa LTFRB lang nga jurisdiction. It does not include tricycles and delivery services. Wala kami kabalo kon maagi na sa ila kay indi man sila under LTFRB,” he explained.

There are 14,029 units of PUVs under the LTFRB-6 jurisdiction eligible to receive the subsidy. Below is the breakdown:

* PUB – 1,290 units or 20 operators

* point-to-point service – 31 units or one operator

* mini bus – 254 units or 112 operators

* modernized PUJ – 1,004 units or 31 operators

* traditional PUJ – 6,255 units or 1,521 operators

* modernized utility vehicle express – 38 units or four operators

* traditional utility vehicle express – 553 units or 164 operators

* taxi – 3,440 units or 480 operators

* shuttle transport – 66 units or nine operators

* Filcab – 24 units or two operators

* school transport – 14 units or 11 operators

* tourist transport service – 933 units or 83 operators

* transport network vehicle service – 127 units or 117 operators

The validated and final list of beneficiaries will come from the LTFRB central office.

Sa babaw na ang determination tapos on the basis of their determination, sila na [referring to the LTFRB central office] ang ma-download sa participating Land Bank branch, tapos i-furnish ang list. On our end, we will endeavor to notify sa kon sin-o ang ara sa lista,” explained Altura.

He added: “We do not know kon pila ni ang maka-qualify per region kag kon ma-qualify, pila ang entitlement sa ila.”/PN 

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