Manila: The Land Transportation Franchising and Regulatory Board (LTFRB) is considering implementing an online distribution system for the government's fuel subsidy intended for public utility vehicle (PUV) drivers. This initiative aims to mitigate the impact of increasing fuel prices in the global market.
According to Philippines News Agency, this move aligns with President Ferdinand R. Marcos Jr.'s directive to ensure the efficient and timely distribution of the fuel subsidy. On Friday, LTFRB Chair Vigor Mendoza II extended an invitation to electronic money issuers (EMIs) to serve as payment channel providers, facilitating the distribution of the PHP5,000 subsidy to each eligible beneficiary.
"Our objective in partnering with Electronic Money Issuers is to guarantee an efficient, secure, and transparent distribution of the fuel subsidy to the program's beneficiaries," Mendoza stated. To ensure these EMIs can manage such transactions, they have been asked to submit a letter of intent along with necessary documents demonstrating their legitimacy and capability.
Mendoza emphasized, "The submitted documents, along with any additional papers required later, will be used by the LTFRB to assess the EMIs' capability to participate in the program as Payment Channel Providers." Previous digital distribution efforts have shown to be "effective and efficient," eliminating the need for beneficiaries to visit distribution centers and endure long queues.
As of December last year, the Bangko Sentral ng Pilipinas accredited 29 EMI banks, including the Land Bank of the Philippines, BDO Unibank, Inc., and Citibank, N.A. Additionally, 44 EMI non-bank financial institutions, such as Cebuana Lhuillier Services Corporation, G-Xchange, Incorporated, and Maya Philippines, Inc., have also been accredited.
On Wednesday, Acting Transportation Secretary Giovanni Lopez announced that Metro Manila's PUV drivers would begin receiving their fuel subsidy next week, starting with tricycle drivers. Other beneficiaries in Metro Manila and across the country are expected to receive their subsidies shortly thereafter.
During a House Committee on Transportation hearing on Wednesday, Mar Valbuena, chair of the transport group Manibela, highlighted the financial struggles of jeepney drivers, who are losing half of their average daily income-PHP400 out of PHP800-due to soaring oil prices. In a separate interview, Valbuena expressed concerns over the extensive requirements imposed by the LTFRB for PUV drivers to qualify for the fuel subsidy.
