By Cheng Ordoñez
CAGAYAN DE ORO CITY ~~Some ‘11,000 units procured by cooperatives and corporations now affected by increasing fuel prices up 45% year-on-year as income drops 28% –outpacing fixed amortizations against current earnings’
CAGAYAN DE ORO CITY – Transport cooperatives and corporations operating modernized public utility vehicles (MPUVs) are formally requesting a temporary suspension of amortization payments fo their units procured under the government’s Public Utility Vehicle Modernization Program (PUVMP), presenting data showing fixed monthly payments now exceed available income by as much as 300% for some operators amid a 45% year-on-year surge in fuel prices and a 28% drop in earnings, Orlando Marquez, Sr., national president of
CAGAYAN DE ORO CITY – Transport cooperatives and corporations operating modernized public utility vehicles (MPUVs) are formally requesting a temporary suspension of amortization payments for units procured under the government’s Public Utility Vehicle Modernization Program (PUVMP), presenting data showing fixed monthly payments now exceed available income by as much as 300% for some operators amid a 45% year-on-year surge in fuel prices and a 28% drop in earnings, Orlando Marquez, Sr., national president of the Liga ng Transportasyon at Operators sa Pilipinas (LTOP) in a phone interview, 23 Marc,h, said.
Marquez said they are now preparing a joint appeal to be submitted to President Ferdinand Marcos, Jr. and the Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LBP) – the implementing financial institutions for the program – transport groups reported an estimated total of more or less 12,000 modernized units are at risk, with 7,000 units owned by transport cooperatives and close to 5,000 by transport corporations procured under the Public Utility Vehicle Modernization Program (PUVMP) per inventory by the LTFRB, Marquez said.
Launched in 2017, the PUVMP is a flagship initiative of the Department of Transportation (DOTr) designed to replace old, dilapidated PUVs with safer, more environmentally-friendly, and compliant units. The program’s financing scheme sets fixed monthly amortizations based on original projections:
– Modern jeepneys: ₱25,000 to ₱32,000 per unit per month (10-year loan term at 6% interest)
– Modern buses: ₱38,000 to ₱45,000 per unit per month (12-year loan term at 5.5% interest)
However, current financial data from operators shows a stark mismatch with these payment requirements. Diesel prices have climbed from an average of ₱58 per liter in early 2025 to over ₱84 per liter this month – a 45% increase. Average daily income per modern jeepney has dropped from ₱6,200 to ₱4,460 (a 28% decline), translating to monthly earnings of approximately ₱133,800 before expenses. After accounting for fuel costs (now ₱91,000 per month, or 68% of income) and basic maintenance (₱18,000 per month), operators are left with just ₱24,800 – insufficient to cover even the lowest monthly amortization of ₱25,000. For modern buses, monthly earnings after expenses average ₱32,000, falling short of the minimum ₱38,000 amortization requirement.
Some smaller cooperatives report even more dire conditions, with monthly net income of just ₱8,000 to ₱12,000 per unit – less than half of the required payments.
Marquez emphasized that cash assistance provided by the Department of Social Welfare and Development (DSWD) under its fuel subsidy programs has been inadequate to address the scale of the crisis. The DSWD has disbursed ₱5,000 per qualified trike driver, which Marquez said is not enough for jeepney drivers, who should be given P10,000 each while modern jeepney drivers must receive P15,000 each. Marquez said modern transport workers under the emergency subsidy program, complain they need at least ₱15,000 per month per unit to offset rising fuel costs.
“The government’s aid has been too little and too slow to reach most of our members,” said a representative from the Consortium of Mindanao Transport Cooperatives and Corporations (CMTCC), the biggest network group of transport cooperatives in Mindanao headed by Mr. Camcer O. Imam. “With fixed amortizations set based on pre-crisis income projections, and current net earnings barely covering a third of what we owe in some cases, we have no choice but to seek temporary relief. We recognize our obligations under the PUVMP financing agreements, but the numbers simply do not add up – we cannot pay what we do not have,” they said.
DSWD Secretary Rex Gatchalian acknowledged the concerns raised by transport groups, stating: “We understand that the current subsidy amounts may not be enough given the sustained increase in fuel prices. Our agency is currently reviewing the program budget and coverage, with a proposal to increase the subsidy to ₱3,500 per qualified beneficiary and expand eligibility to inc
