The Land Transportation Franchising and Regulatory Board (LTFRB) is considering a digital system for the distribution of fuel subsidies to public utility vehicle (PUV) operators and drivers to ensure faster and smoother delivery of assistance.
The initiative follows the directive of Ferdinand “Bongbong” R. Marcos Jr. to speed up and streamline the distribution of fuel subsidies to the transport sector. The program is being implemented under the guidance of Giovanni “Banoy” Z. Lopez, secretary of the Department of Transportation.
LTFRB Chairperson Vigor D. Mendoza II said the agency has invited electronic money issuers (EMIs) in the country to serve as Payment Channel Providers for the distribution of the ₱5,000 fuel subsidy to each beneficiary.
Mendoza said partnering with EMIs aims to ensure an efficient, secure, and transparent distribution of the cash assistance. However, he noted that the agency must first validate the capability of these financial service providers to handle the transactions.
To facilitate the process, the LTFRB has sent invitations to EMIs accredited by the Bangko Sentral ng Pilipinas, asking them to submit letters of intent and supporting documents that will verify their legitimacy and capacity to implement digital payments for the subsidy program.
The submitted documents, along with additional requirements that may be requested later, will be used by the LTFRB to determine which EMIs can participate in the program.
Earlier, Transportation Secretary Lopez announced that the fuel subsidy distribution for the PUV sector will begin next week, starting with tricycle drivers in selected areas of Metro Manila. Other beneficiaries in Metro Manila and across the country are expected to follow.
Mendoza said digital transactions were chosen as the preferred distribution method since they have proven to be effective and efficient in previous fuel subsidy programs. He added that the system will also eliminate the need for physical distribution venues, reducing long queues for beneficiaries.
The LTFRB chief emphasized that the directive from the President is to ensure that the distribution process remains fast, safe, and convenient for all beneficiaries.
