Benise Balaoing

Jeepneys remain parked silent rows as drivers wait for their turn to ferry passengers at a terminal in Baclaran, Pasay City, on March 23, 2026. For the second consecutive week since fuel prices began their sharp ascent, drivers have largely abandoned active cruising in favor of the "pila" (queuing) system—a tactical shift to minimize fuel consumption and combat the relentless surge in diesel costs. Jonathan Cellona, ABS-CBN News

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DOTr to launch service contracting program on April 15

Andrea Taguines

ABS-CBN News

<div><iframe class="instagram-media instagram-media-rendered" id="instagram-embed-1" src="https://www.instagram.com/reel/DW3DUKSElwV/embed/?cr=1&amp;v=14&amp;wp=675&amp;rd=https%3A%2F%2Fod2-workbench-web.abs-cbn.com&amp;rp=%2F#%7B%22ci%22%3A1%2C%22os%22%3A4459414.699999809%7D" allowtransparency="true" allowfullscreen="" frameBorder="0" height="490" data-instgrm-payload-id="instagram-media-payload-1" scrolling="no" style="background:white;max-width:540px;width:calc(100% - 2px);border-radius:3px;border:1px solid rgb(219, 219, 219);box-shadow:none;display:block;margin:0px 0px 12px;min-width:326px;padding:0px"></iframe></div><script async="" src="//www.instagram.com/embed.js"></script><div><br/></div><p>MANILA -- The Department of Transportation (DOTr) will roll out a service contracting program for public utility vehicles starting April 15, 2026 to help sustain public transportation operations amid the ongoing fuel crisis, Secretary Banoy Lopez said Wednesday.</p><div><a href="https://www.abs-cbn.com/news/business/2026/3/31/dotr-awaits-order-for-service-contracting-amid-oil-price-hikes-1611" rel="noopener noreferrer" target="_blank">DOTr awaits order for service contracting amid oil price hikes</a></div><p>The program, which was one of the measures also implemented during the COVID-19 pandemic, is designed to ease commuting costs for passengers while supporting transport operators and drivers, with the government subsidizing their earnings during free rides.</p><p>Lopez said the DOTr has secured P1 billion in funding from the Department of Budget and Management (DBM), after requesting the funds as early as March 16.</p><p>“Nabigay na. I’m going to use my existing NCA (Notice of Cash Allocation) na fund para lang magamit ko na yung service contracting, and we can start by April 15,” he said.</p><p>Lopez said the initiative will be implemented nationwide, although the Land Transportation Franchising and Regulatory Board (LTFRB) is still finalizing the number of routes and public utility vehicles (PUVs) to be covered.</p><p>Earlier implementations of the service contracting program had two different types of contracts for PUVs: gross and net.   </p><p>Under the Gross Service Contract or Libreng Sakay, commuters get free rides, and operators are paid based on their daily number of trips. </p><p>Under the Net Service Contract, commuters are still required to pay fares, and operators are paid an agreed-upon amount covering a portion of the operational and maintenance costs.</p><p>Lopez added that the agency is including routes that connect to major transport systems.</p><p>“Ang habol kasi namin ngayon may feeder routes kami sa busway, papunta sa LRT-1, LRT-2, sa mass transit para hindi rin sayang,” he said.</p><p>The DOTr is set to hold a press conference on Friday to give more details.</p><p>Lopez also said he has requested additional funding to keep the service contracting program going as long as necessary.</p><div><em>ERRATUM: An earlier version of this story said free rides would be offered via service contracting. We regret the error.</em></div>

<p>The DOTr will roll out a service contracting program starting April 15, 2026 to help sustain public transportation operations amid the ongoing fuel crisis.</p>

The DOTr will roll out a service contracting program starting April 15, 2026 to help sustain public transportation operations amid the ongoing fuel crisis.

DOTr to offer discounted rides via service contracting of PUVs starting April 15

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DOTr to offer discounted rides via service contracting of PUVs starting April 15

Andrea Taguines,

ABS-CBN News

Published April 08, 2026 07:36 PM PHT

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Updated April 10, 2026 10:38 AM PHT

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