Cebu City Implements Voter Registration Requirement for Fuel Subsidy Program
In a decisive move to address the escalating fuel crisis, Cebu City Mayor Nestor Archival declared on Tuesday, March 24, 2026, that only public transport drivers registered as voters in Cebu City will be eligible for the city government's fuel subsidy initiative. This announcement comes as the transport sector grapples with skyrocketing fuel prices, exacerbated by ongoing conflicts in the Middle East, forcing many drivers to halt operations due to unsustainable costs.
Voter Registration as a Key Eligibility Criterion
To qualify for the subsidy, drivers must provide proof of voter registration, such as a voter's identification card or an official certification. This requirement is designed to ensure that city funds are allocated exclusively to Cebu City constituents, prioritizing local residents in the distribution of financial aid. The city government has mandated transport groups to segregate drivers based on their voter status, with operators given until Wednesday, March 25, to submit comprehensive driver lists to facilitate fund processing.
Mayor Archival emphasized that the total subsidy amount remains undetermined, pending a final count of eligible drivers. "The moment we determine the number of drivers, we will know how much we can allocate, as there is a fixed budget," he stated. Funding will be sourced from a supplemental budget endorsed by the Cebu City Development Council, aiming to provide targeted relief amid the financial strain.
National and Local Assistance Layers
The city's subsidy program complements existing national aid efforts. On the same day, the Department of Transportation initiated nationwide fuel subsidy distributions, offering:
- P5,000 each to drivers of buses, school transport, taxis, and modern and traditional UV Express units.
- P10,000 per unit to operators of buses and modern UV Express units.
Collectively, the national program has allocated an estimated P2.5 billion, with over 245,000 drivers expected to receive funds via bank accounts or electronic wallets. Locally, drivers may also access additional support, including P5,000 from the Department of Social Welfare and Development's Assistance to Individuals in Crisis Situation (AICS) program and P1,500 from the Land Transportation Franchising and Regulatory Board.
Deepening Crisis and Financial Strain
The push for fuel subsidies in Cebu City has intensified over recent weeks, driven by a severe economic crunch. Fuel prices in Cebu have surged by 21 to 75 percent since the start of 2026, with diesel exceeding P130 per liter as of March 24. This spike, triggered by fresh hostilities in the Middle East on February 28, has compelled numerous drivers to park their vehicles, with some returning units to operators as daily earnings plummet below viable levels.
Ellen Maghanoy, chairperson of the Federation of Cebu Transport Cooperatives (FCTC), highlighted the dire financial impact on operators. Under current cooperative agreements, drivers cover fuel costs up to P80 per liter, while operators absorb amounts beyond that threshold. With prices now around P120 per liter, operators are subsidizing approximately P40 per liter extra. Given a daily consumption of 50 liters per unit, this translates to about P2,000 in daily subsidies, severely eroding the P3,000 rental fee and leaving operators with minimal profits after accounting for monthly amortizations and operational expenses.
Averting a Transport Holiday
Initially, Cebu transport groups prepared to join a nationwide transport holiday in protest of the crisis. However, they suspended participation following dialogues with Land Transportation Franchising and Regulatory Board 7 officials, who committed to expediting financial assistance. Richard Cabucos, chairperson of the United Cebu Transport Operators Association, confirmed that while groups were poised to protest, they stood down as government aid processing began. Operators are now required to submit driver lists along with GCash accounts for direct disbursement, with subsidies covering only drivers, not conductors.
Despite this reprieve in Cebu, transport groups in other regions, including parts of Luzon, Mindanao, and Visayas areas like Iloilo and Cagayan, are proceeding with the transport holiday, underscoring the widespread nature of the crisis.
Addressing CBRT and LPTRP Concerns
Tuesday's meeting also tackled ongoing issues with the Cebu Bus Rapid Transit (CBRT) and the proposed Local Public Transport Route Plan (LPTRP). Passengers have voiced complaints about loading and unloading areas being situated farther from usual stops, prompting some operators to suggest temporary lane exits for drop-offs. Raquel Arce, head of the Cebu City Transportation Office, rejected this proposal, citing potential traffic disruption and confusion.
Mayor Archival urged the public to adapt to the new system and called on drivers to adhere to proper loading and unloading protocols. He noted that some drivers contribute to congestion by stopping mid-route, a issue that will be mitigated by deploying additional personnel to guide them to designated areas.
Regarding the LPTRP, which aims to rationalize transport routes, reactions were mixed among operators. While some expressed support, others raised concerns over possible route reductions. The plan has gained approval from the LTFRB and is currently under second reading in the Cebu City Council, signaling ongoing efforts to streamline public transportation amidst the fuel crisis.
