The Department of Transportation (DOTr) will seek a moratorium on loan interest payments for modern jeepney operators from two government banks—the Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP).
Secretary Banoy Lopez said jeepney operators need relief from interest payments amid the continued increase in fuel prices caused by the worsening crisis in the Middle East.
Lopez said he will ask DBP and LandBank to grant a moratorium on loan interest payments under the Public Utility Vehicle Modernization Program (PUVMP). A moratorium on interest payments would help reduce the financial burden on operators.
In addition, the DOTr and the Land Transportation Franchising and Regulatory Board (LTFRB) are considering extending the PHP10-per-liter fuel discount to help reduce fuel expenses for PUV operators and drivers.
Lopez suggested a more targeted approach to ensure that assistance reaches drivers and operators. Mass transport groups have already filed petitions for a fare hike following the latest surge in fuel prices.
The proposed fare increase is estimated to provide traditional and modern jeepney drivers with an additional PHP300 to PHP500 in daily income. However, Lopez said increasing the fuel discount instead of approving a fare hike could provide drivers with comparable additional earnings while sparing commuters from higher fares.
Under the DOTr’s current PHP10-per-liter Fuel Discount Program, qualified PUV and UV Express drivers are entitled to discounts on up to 150 liters of fuel, equivalent to PHP1,500.
“The bottom line here is we protected the commuters through targeted interventions,” he said, adding that this way, higher inflation could be avoided.
