Jeepney Phaseout: Increase Gov't Subsidies for New Vehicle Purchases

Jeepney Phaseout: Increase Gov't Subsidies for New Vehicle Purchases

The Issue

On December 31st, the Land Transportation Franchising and Regulatory Board (LTFRB) will be implementing Memorandum Circular No. 2023-013, instituting a final deadline for all jeepney drivers to consolidate into a corporation.This is the first step towards the jeepney modernization program.

After then, drivers will have to pool money towards purchasing new jeepneys - most of which cost between 1.3-2.6 million pesos.While the government has announced intentions to subsidize nearly 28% of a jeep’s cost, jeepney drivers will still need to contribute between 20,000-40,000 pesos for the price of one jeep.

While jeepney drivers are willing to switch to modern vehicles, most are not able to shoulder the costs, as some drivers’ income continues to recover from pre-pandemic levels. For commuters, this means fares will increase between 30-40 pesos.

Subsidies must be increased if the government is willing to push through with the 12/31 deadline. Help by signing the 12/31 petition and watching the documentary - out on December 1.

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The Issue

On December 31st, the Land Transportation Franchising and Regulatory Board (LTFRB) will be implementing Memorandum Circular No. 2023-013, instituting a final deadline for all jeepney drivers to consolidate into a corporation.This is the first step towards the jeepney modernization program.

After then, drivers will have to pool money towards purchasing new jeepneys - most of which cost between 1.3-2.6 million pesos.While the government has announced intentions to subsidize nearly 28% of a jeep’s cost, jeepney drivers will still need to contribute between 20,000-40,000 pesos for the price of one jeep.

While jeepney drivers are willing to switch to modern vehicles, most are not able to shoulder the costs, as some drivers’ income continues to recover from pre-pandemic levels. For commuters, this means fares will increase between 30-40 pesos.

Subsidies must be increased if the government is willing to push through with the 12/31 deadline. Help by signing the 12/31 petition and watching the documentary - out on December 1.

Petition Updates