Philippines’ Marcos pushes digital payments for fuel subsidies

With the ongoing tensions in the Middle East, the Philippines has been exploring subsidizing PUV fuel via digital payments. Meanwhile, digital payments in the country reached 43% in January 2026.

Streamlining the distribution of fuel subsidies for PUV drivers and operators

As the Iran-U.S. war continues to affect oil prices worldwide, like other Asian countries, the Philippines is looking for ways to ease the burden on the public. One of the solutions the government has implemented is providing fuel subsidies to all public utility drivers and operators nationwide.

The country’s Department of Transportation (DOTr) began distributing fuel subsidies last March 24. However, distributing this aid would be a challenge, as there are 245,066 drivers and 1,180,783 PUV operators in the Philippines. Amid this problem, President Ferdinand “Bongbong” Marcos Jr. called for simplifying distribution and considering digital payments.

In a report by local news outlet Inquirer, Marcos expressed his view during the rollout of the PHP10,000 ($166) fuel cash aid, saying, “Perhaps it’s more convenient, easier and more practical if, as much as possible, we use digital payment.”

“I’m making sure that the system becomes orderly. So, we are now providing a PHP10,000 subsidy for each bus unit. Then for the method of payment, all kinds of payment methods are allowed… There are still some who really prefer not to go digital. That’s also fine. They can issue a check, and if really necessary, even cash is still allowed,” he added.

Additionally, the president urged operators to collaborate with the government to address the effects of rising fuel costs on commuters. “Please help us so that our riding public will not have too much difficulty, first of all, and won’t be too heavily burdened by fares, because we all know what’s happening—the price of oil is changing all over the world,” Marcos said.

“That’s why this is the government’s response. And, of course, we are always in need of assistance, support, and cooperation from the operators, the drivers—the entire system.”

Shift toward digitalization surging in the Philippines

In other news, the Southeast Asian country is shifting toward more digital and cashless transactions, as data from the Bangko Sentral ng Pilipinas (BSP) showed that transactions through InstaPay and PESONet spiked by 43% from a year earlier to PHP2.58 trillion ($42.9 billion) by the end of January.

Transaction volume more than tripled at PHP688 million, 329% higher than the PHP160.2 million ($2.66 million) recorded in January 2025.

“[It’s] driven by wider use of mobile banking and e-wallets, strong remittance flows, and growth in e-commerce,” said John Paolo Rivera, senior research fellow at the Philippine Institute of Development Studies. “Digital payments should continue to grow at a double-digit pace, supported by financial inclusion, better payment infrastructure, and changing consumer behavior, although growth may gradually normalize as adoption matures,” he added.

“What we’ll see next is steady, sustainable expansion as digital payments become a normal part of daily life for households and businesses,” Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said.

In the past year, the value of InstaPay transactions increased by 65%, reaching PHP1.24 trillion ($20.6 billion). The number of transactions also rose significantly, jumping 350% to 678 million. On the other hand, PESONet experienced a 23.8% increase in transaction value, totaling PHP1.3 trillion ($21.6 billion). The number of transactions handled by PESONet rose to 10.5 million, up 9% from last year.

PESONet and InstaPay are automated clearing houses that operate under the BSP’s National Retail Payment System.

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