THE Land Transportation Franchising and Regulatory Board (LTFRB) is eyeing the online distribution of the government’s fuel subsidy for public utility vehicle (PUV) drivers to address the rising fuel prices in the world market.
The plan is in line with President Ferdinand R. Marcos Jr.’s order to ensure a fast and smooth distribution of fuel subsidy.
On Friday, LTFRB Chair Vigor Mendoza II invited electronic money issuers (EMIs) to become their payment channel providers for the fuel subsidy worth PHP5,000 for each eligible beneficiary.
“In engaging the services of Electronic Money Issuers, our goal is to ensure an efficient, secure, and transparent distribution of fuel subsidy assistance to program beneficiaries,” Mendoza said.
To ensure their capability to handle such transactions, these EMIs were asked to submit a letter of intent and other documentary requirements to prove their legitimacy and capability to handle the transactions.
“It is through the submitted documents, as well as other papers that may be required later, which will serve as the basis for the LTFRB to determine the capability of the EMIs to participate in the program by serving as Payment Channel Provider,” he said.
Based on past fuel subsidy distributions, he said digital distribution has proven to be “effective and efficient” as there would be no need to go to distribution venues and stand in long queues.
As of December last year, the Bangko Sentral ng Pilipinas accredited 29 EMI banks, such as the Land Bank of the Philippines, BDO Unibank, Inc., Citibank, N.A., among others.
The BSP has also accredited 44 EMI non-bank financial institutions, such as Cebuana Lhuillier Services Corporation, G-Xchange, Incorporated, Maya Philippines, Inc, among others.
On Wednesday, Acting Transportation Secretary Giovanni Lopez announced that the distribution of fuel subsidy for PUV drivers in Metro Manila will begin next week, starting with tricycle drivers.
Other beneficiaries in Metro Manila and the rest of the country are expected to receive their fuel subsidy soon after.
On Wednesday’s hearing of the House Committee on Transportation, transport group Manibela chair Mar Valbuena said jeepney drivers are losing half of their average daily income—PHP400 out of PHP800—due to rapid oil price hikes.
In a separate interview, Valbuena also lamented the several requirements by the LTFRB for PUV drivers to be eligible for the fuel subsidy. (PNA)
