Press Release
October 20, 2021

Hontiveros: Service contracting, win-win solution for PUV drivers, commuters amid rising fuel prices

Senator Risa Hontiveros on Wednesday urged the Department of Transportation to expand the government's service contracting to ensure that fares in public transport will remain affordable amid the rising fuel costs.

"Kailangang pag-igtingin pa ang service contracting. Hindi lang ito sagot sa problema ng mahabang pila ng commuters tuwing rush hour, kundi malaking kaluwagan din na mapanatiling mababa ang pasahe," Hontiveros said.

The prices of gasoline and other petroleum products have gone up by more than P7 a liter in less than two months. Transport groups have been calling for a P3 increase in minimum fare to keep up with the gasoline costs.

According to Hontiveros, more public utility vehicle (PUV) drivers and operators must be recruited in the program and the existing issues surrounding the payout of drivers already subscribed to the service contracting program must likewise be addressed immediately.

"Kailangang gobyerno ang sumalo ngayong parehong tsuper at komyuter ang nalalagay sa alanganin. Gobyerno ang magpapasweldo sa mga tsuper at aako ng gastos sa gasolina para hindi muna magtaas ang pasahe at maipasa sa konsyumer," Hontiveros stated.

The Senator noted that the P3B unreleased funds under the service contracting and libreng sakay programs can be tapped to help accommodate more driver-beneficiaries and afford fuel and fare subsidies.

However, this is nowhere near enough and the government needs to at least appropriate more than P5B, the same amount allocated to service contracting under Bayanihan 2.

"Land Transportation Franchising and Regulatory Board (LTFRB) needs to ramp up with obligating the P3B it has from the 2021 budget," she said.

"Kailangan ding hanapan ng pandagdag na pondo katumbas ng inilaan para sa service contracting sa Bayanihan 2 na nasayang lang. Dapat mabayaran ang mga tsuper ng on time at sapat para maging kapaki-pakinabang ang sistemang ito," Hontiveros furthered.

Another source of revenue, she said, is the collected duties and taxes from the fuel marking program under the TRAIN law.

"Pinagmamalaki ng Department of Finance ang success ng fuel marking program. As of 2020, P131.17B ang nakolektang buwis mula dito. Magandang tingnan kung paano ito makakatulong na dagdag ayuda o suporta sa mananakay at sa mga pasahero," Hontiveros said.

Hontiveros said that an efficient and expanded service contracting program will be the 'perfect balance' in serving both the interests of the commuting public and the PUV drivers.

"Mahirap timbangin ang sitwasyon. Kapag pinagbigyan ang taas-pasahe, commuters ang aaray. Kapag naman hindi ito payagan, ang drivers ang maiipit at lalong liliit pa ang kita. Service contracting ang win-win solution para sa lahat," she concluded.

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