Cebu City Considers Emergency Fuel Subsidies as Soaring Costs Cripple Public Transport
Cebu City Eyes Fuel Subsidies Amid Transport Crisis

In Cebu City, a severe transportation crisis is unfolding as skyrocketing fuel prices compel numerous public transport drivers to abandon their vehicles and cease operations. The relentless daily surge in diesel and gasoline costs has rendered it financially impossible for many drivers to earn a living, forcing some to return their units to operators. In response, the Cebu City Government is urgently investigating the feasibility of emergency fuel subsidies to support these drivers and maintain essential public transport services across the metropolis.

The Struggle on the Streets

Transportation leaders have reported that multiple jeepney drivers halted their routes just last week. A combination of dwindling passenger numbers and exorbitant fuel expenses, now ranging from P70 to P80 per liter, has driven daily earnings below sustainable thresholds. Greg Perez, the Cebu chapter head of the Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide, disclosed that they presented this dire reality to the City Government. He elaborated that escalating fuel costs have completely eradicated the daily take-home pay for countless drivers.

"Previously, I would allocate approximately P1,000 for fuel during a day's journey, but now that figure has skyrocketed to P1,500 solely for fuel, despite maintaining identical trip durations, hours, and routes," Perez stated in Cebuano. The majority of public utility vehicles operate under the boundary system, requiring drivers to remit a fixed daily fee to operators before retaining any residual earnings.

Perez acknowledged that some operators have attempted to alleviate the burden by slightly reducing this daily fee, but the relief remains negligible. "Our current boundary for jeepneys, particularly Elf units on each route, hovers around P1,200 or P1,100. A few operators have marginally decreased it, so instead of P1,100, they set it at P1,000, allowing drivers to retain a modest additional amount," he explained.

Since the Land Transportation Franchising and Regulatory Board (LTFRB) has not sanctioned a fare increase, certain drivers and passengers have turned to informal arrangements. Drivers are not coercing passengers into paying more but are instead making temporary appeals for minor fare adjustments to help them manage their expenses.

Pleading for Local Assistance

To address this escalating issue, Mayor Nestor Archival convened with representatives from taxi, modern jeepney, and traditional jeepney groups on Thursday, March 12, 2026. During this meeting, the transport sector formally requested financial assistance from the city to offset their overwhelming fuel expenditures.

"They are grappling with immense difficulties because diesel and gasoline prices are exceptionally high, yet the fares they collect remain unchanged. The LTFRB has already declared that there will be no fare increase," Archival emphasized. The mayor directly inquired about the specific type of aid required by the drivers, leading to the immediate proposal for a local fuel subsidy.

"What they desire is for the city to furnish a certain subsidy for their trips, essentially financial assistance that can help cover their fuel purchases," Archival clarified.

Looking Ahead

Moving forward, transport groups have agreed to submit a formal request encompassing a comprehensive list of drivers and cooperatives eligible for the financial aid. The City Government will subsequently verify these names with the LTFRB to ensure all beneficiaries are legitimate drivers. Concurrently, Archival will collaborate with the City Treasurer's Office to ascertain the availability of funds, including unutilized allocations from prior years.

If the city can identify sufficient resources, the mayor affirmed that he will incorporate the subsidy into a supplemental budget request. The precise amount of the proposed subsidy remains undetermined at this stage. For now, Cebu City drivers are clinging to hope that local financial aid will materialize to salvage their livelihoods. Archival cautioned that if fuel prices continue to ascend without governmental intervention, transport groups might eventually advocate for strikes, although such actions must be officially declared by national transport organizations.