President Ferdinand R. Marcos Jr. has ordered the immediate allocation of additional funds to expand the Service Contracting Program (SCP), a strategic move designed to stabilize the livelihood of transport workers while providing significant fare relief to millions of Filipino commuters amid rising global oil prices.
During a site inspection at the Araneta Center Bus Terminal in Cubao on Monday, the President reviewed the program’s rollout alongside Department of Transportation (DOTr) Acting Secretary Giovanni Lopez and Land Transportation Franchising and Regulatory Board (LTFRB) Chairman Vigor Mendoza II.
The SCP, which officially launched its latest phase on April 15, 2026, operates on a “gross contract” model. The government compensates Public Utility Vehicle (PUV) operators based on kilometers traveled rather than passenger count, ensuring steady earnings despite Middle East tensions affecting fuel costs.
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Driver Incentives: Payments ranging from ₱30 to ₱100 per kilometer.
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Commuter Benefits: A guaranteed 20% fare discount for all riders.
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Target Reach: Expansion to cover 50,000 PUV units nationwide.
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Estimated Impact: Direct relief for up to 15 million commuters. “Our service contracting program aims to ensure that our drivers and operators still earn income, without increasing the burden on our commuters,” said DOTr Acting Secretary Lopez.
LTFRB Chairman Vigor Mendoza II emphasized that the administration’s focus on direct subsidies is more effective than broad tax suspensions.
Mendoza noted that while removing excise tax might only save drivers roughly ₱6 per liter, the SCP framework provides a comparative ₱10 benefit, offering a more substantial cushion against inflation.
“The President’s strategy is very focused on sectors that need it most,” Mendoza explained. “With the SCP, Fuel Subsidies, and the DSWD’s Assistance to Individuals in Crisis Situation (AICS) all active, we have a comprehensive safety net to help our people through this economic period.”
