What Is Service Contracting, and Can It Ease the Burden for PUV Drivers and Commuters?

The Land Transportation Franchising and Regulatory Board (LTFRB) has relaunched its Service Contracting Program (SCP), aiming to provide additional support to public transport operators and commuters amid rising fuel costs.

Jeepney fuel hikes

Photo: Hitoshi Namura/Unsplash

Under the SCP, participating vehicles will be compensated by the government at around ₱40 to ₱100 per kilometer traveled. On the commuter side, passengers on covered routes will receive a 20 percent fare discount, in addition to the existing 20 percent discount for senior citizens and persons with disabilities.

It covers around 800 routes nationwide and involves roughly 40,000 public utility vehicles, including traditional and modern jeepneys, UV Express units, and buses.

For vehicles with installed GPS units, the distance traveled will be automatically recorded through the system. Units without GPS will use a QR code-based system, according to the LTFRB.

Kung walang GPS ay mayroon tayong QR code system. Kung saan ang mangyayari, magki-click ‘yung tao natin sa baba, i-scan nila ‘yung QR code ng sasakyan sa point A tapos sa destination sa point B, iki-click na naman,” LTFRB Chairman Vigor Mendoza said.

Mendoza led the relaunch and visited the Kamuning Station of the EDSA Bus Carousel on Wednesday, April 15, 2026, to inspect participating buses.

Carpooling PH

Photo: XT7 Core/Unsplash

The government has allocated ₱800 million for the first phase of the program, which is expected to run for about two weeks, according to Mendoza.

Alongside the SCP, a separate fuel-assistance measure is being implemented, providing a ₱ 10-per-liter discount for authorized jeepneys and UV Express units.

Each vehicle may avail of a discounted allocation of up to 150 liters per week, or 30 liters per day, through a system linked with participating gas stations.

Si Landbank may app na naka-link sa gas station… malalaman na nila kung ‘yung sasakyan ay authorized ng LTFRB,” Mendoza said, explaining how attendants can verify eligible vehicles and apply the discount automatically.

The LTFRB said the combined measures are intended to help public utility drivers manage operating costs while maintaining service for commuters.

ALSO READ: This New Website Helps Drivers Find Cheaper Gas in Metro Manila


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