The Land Transportation Franchising and Regulatory Board (LTFRB), in coordination with the Department of Transportation (DOTr), is set to implement a service contracting scheme for public utility vehicles (PUVs) if the recent surge in oil prices persists.

Under this program, PUV drivers would continue transporting passengers, while the government directly compensates them for the services rendered.

The initiative is designed to ease the financial burden on drivers affected by rising petroleum costs, supplementing existing fuel subsidy measures.

In an ambush interview, LTFRB Chairman Vigor D. Mendoza II confirmed that P700 million has been allocated for the program. He emphasized that service contracting is one of several solutions the DOTr and LTFRB are considering to support affected PUV operators.

The service contracting scheme was previously employed by the agencies during the height of the COVID-19 pandemic, helping ensure continued public transport operations while safeguarding drivers’ incomes.