Philippine Transport Groups Urge Government Intervention Amid Middle East Tensions
Local transport groups and operators in the Philippines are expressing deep concern over the potential surge in oil prices due to escalating tensions in the Middle East. Instead of implementing immediate fare increases, they are urgently calling for government intervention to mitigate the impact on both operators and commuters.
Call for Fuel Subsidies and Service Contracting
Ellen Maghanoy, president of the Federation of Cebu Transport Cooperatives (FCTC), stated on Tuesday, March 4, 2026, that her group supports proposals submitted to the Land Transportation Franchising and Regulatory Board (LTFRB). These proposals request fuel subsidies and service contracting from the national government to alleviate financial pressures.
"We support measures that can prevent further oil price hikes because it is the commuters who will ultimately bear the brunt of this," Maghanoy emphasized. She clarified that fare increases should only be considered as a last resort, highlighting the critical need for alternative solutions.
Financial Struggles of Transport Operators
Maghanoy explained that fuel costs account for nearly 50 percent of the daily operational expenses for Public Utility Vehicles (PUVs), excluding maintenance and driver salaries. This heavy reliance on oil makes the sector highly vulnerable to price fluctuations.
On Tuesday, March 3, she reported that their diesel supply depot had already raised prices from P49 to P59 per liter due to increased demand. "With the new price changes, operators are already struggling. Many of us are still paying monthly bank amortizations," she added. Maghanoy noted that some operators have not fully recovered from the earthquake on September 30, 2025, and Typhoon Tino on November 4, 2024, compounding their financial woes.
Government Preparedness and Subsidy Details
On March 3, 2026, President Ferdinand Marcos Jr. announced that the government is preparing targeted fuel subsidies amounting to P2.5 billion. These subsidies will be released if crude oil prices reach $80 per barrel, demonstrating proactive measures to support the transport sector.
According to LTFRB Chairman Vigor Mendoza II, the subsidies will benefit drivers of modern and traditional jeepneys, UV Express, Transport Network Vehicle Services (TNVS), and other PUVs. Tricycle drivers will also receive assistance through their respective Local Government Units (LGUs).
The subsidies are strictly for use at accredited fuel providers and cannot be withdrawn as cash, ensuring they are utilized for their intended purpose. Beneficiaries are encouraged to validate or replace expired or lost cards through the Land Bank of the Philippines to avoid disruptions in access.
Monitoring and Regulatory Measures
Maghanoy urged the Department of Trade and Industry (DTI) and other regulators to closely monitor oil companies to prevent profiteering or exploitation of the current situation. She also discussed the possibility of suspending the excise tax on fuel under the TRAIN Law if global market prices rise significantly, which could provide additional relief.
Global Context and Impact
Tensions in the Middle East have intensified following reports of military strikes by the United States and Israel against Iranian-linked targets. This region is a major global oil supplier, meaning any instability there has a direct and substantial effect on the worldwide oil market, driving up prices and affecting economies like the Philippines.
The collective call from transport groups underscores the urgent need for coordinated efforts between the government and private sector to stabilize the transport industry and protect commuters from undue financial burdens during this period of uncertainty.
