The situation, in brief
Transport workers will continue to benefit from the fuel subsidy under the Uplift framework, ongoing service contracting, and ₱176 million for the Public Transport Modernization Program under the Marcos administration’s proposed 2027 national budget, Budget Secretary Kim Robert De Leon said…
Transport workers will continue to benefit from the fuel subsidy under the Uplift framework, ongoing service contracting, and ₱176 million for the Public Transport Modernization Program under the Marcos administration’s proposed 2027 national budget, Budget Secretary Kim Robert De Leon said Saturday.
De Leon explained the details in an interview on DZRH News program Special on Saturday on September 5, as part of the DZRH SONA 2026 Series featuring the Department of Budget and Management (DBM).
The President’s Budget chief said the ₱176 million for the Public Transport Modernization Program is a direct, stand-alone provision in the 2027 budget continuing the government’s effort to replace aging and inefficient public transport vehicles with modern units.
“Patuloy nating sinusuportahan yung Public Transport Modernization Program. So meron tayong 176 million na nakalaan diyan to fully support, continue our support dun sa modernization ng ating transport sector,” De Leon said.
He said the fuel subsidy for transport workers, triggered by the sustained rise in oil prices caused by the Middle East conflict, is being sustained through the Uplift framework, which draws from disaster and contingency funds rather than a dedicated stand-alone budget line, making it more flexible and responsive.
“Hanggang ngayon naman, ating ini-augment din yung fuel subsidy na binibigay natin hangga’t mataas pa ngayon yung presyo ng langis under the uplift framework, ay sinusuportahan din natin ‘yan, na we hope kung may maiiwan doon, magko-continue until 2027 kung talagang mananatiling mataas yung presyo ng petrolyo,” De Leon said.
He said service contracting, under which the government pays transport operators a fixed fee per kilometer to ensure routes remain served even at lower fares, is also continuing, with the Department of Transportation (DOTr) implementing it with funding downloaded this year and continuing next year.
De Leon said the economic team projects oil prices will normalize by end of year, though not returning to pre-war levels, meaning the fuel subsidy contingency may not be needed for the full year of 2027 if market conditions improve as expected.
