Transportation

PUV Contract Scheme Pays Operators P30 to P100 per Km

INQUIRER.net
INQUIRER.net•Apr 11, 2026

Why It Matters

The subsidy creates a financial incentive for operators to maintain service levels and upgrade vehicles, potentially improving commuter affordability and supporting the Philippines’ broader transport modernization agenda.

Key Takeaways

  • •Government subsidizes PUV operators 30–100 pesos per kilometer.
  • •Payment applies to buses, modern jeepneys, traditional jeepneys, UV Express.
  • •Maximum subsidy limited to routes not exceeding one hundred kilometers.
  • •Rates include a 20% discount, regardless of vehicle age.
  • •Senior passengers receive additional fare discounts on subsidized routes.

Summary

The transport department unveiled a new public utility vehicle (PUV) contract scheme that pays operators a per‑kilometer subsidy ranging from 30 to 100 pesos.

The program covers buses, modern jeepneys, traditional jeepneys and UV‑Express vans. Payments are capped at routes no longer than 100 km and include a flat 20 % discount that applies regardless of vehicle age.

Officials quoted the formula: “If you’re a traditional jeepney, we’ll pay you 30 pesos per kilometer,” emphasizing that the rate is fixed and not tied to fuel costs. Senior citizens will still enjoy the existing fare concession on top of the subsidy.

By guaranteeing revenue per distance traveled, the scheme aims to modernize fleets, lower fares for commuters and ease the government’s budget exposure, while giving operators a predictable cash flow.

Original Description

Bus and jeepney operators nationwide will receive financial support ranging from P30 to P100 per kilometer starting next week under the government’s service contracting program, one of the measures adopted to help the transport sector cope with soaring fuel prices caused by the Middle East conflict. I 🎥: Arnel Tacson, INQUIRER.net

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