Manila transport drivers strike over fuel costs

Background on fuel price surge in the Philippines

Since early 2024, the price of gasoline and diesel in the Philippines has risen sharply. The average retail price of unleaded gasoline climbed to more than 80 Philippine pesos per litre, a level not seen in the past decade. Analysts link the increase to higher global crude oil prices, a weaker local peso, and higher taxes on petroleum products.

The Philippine Department of Energy reported that the cost of imported crude rose by over 30 percent in the last six months. The International Energy Agency also warned that supply constraints in the region could keep prices elevated for the remainder of the year.

Impact on transport operators

For drivers of jeepneys, tricycles, buses and taxis, fuel represents the largest single expense. A typical jeepney that travels 150 kilometres a day can spend more than 2,500 pesos on fuel alone, a figure that erodes profit margins that were already thin after the implementation of the public utility vehicle modernization program.

Many operators have tried to offset costs by raising fares, but the Department of Transportation limits fare hikes to protect commuters. The resulting financial squeeze has led drivers to organize a collective response.

Details of the strike

On September 12, 2024, a coalition of driver unions announced a three day strike beginning at 6 a.m. The strike aims to pressure the government to lower fuel taxes and provide temporary subsidies for public transport operators.

Timeline and demands

The strike schedule is as follows:

1. Day one – drivers halt services on major routes in Metro Manila, while still offering limited rides for emergency cases.
2. Day two – a partial resumption of routes with reduced frequency, accompanied by organized rallies at key transport terminals.
3. Day three – a full return to service if negotiations produce a satisfactory agreement; otherwise, the strike may be extended.

Key demands include:

• A reduction of the excise tax on gasoline and diesel by at least 10 percent.
• Immediate cash assistance equivalent to one month of fuel expenses for small operators.
• Accelerated implementation of the modern jeepney program to improve fuel efficiency.

Government response

The Department of Transportation acknowledged the strike and pledged to open a dialogue with driver representatives. In a press briefing, the department cited ongoing discussions with the Department of Finance about possible tax relief measures.

Potential economic effects

Economists warn that a prolonged disruption in public transport could affect productivity across the city. The Philippine Statistics Authority estimates that daily commuter traffic contributes roughly 5 percent of Manila’s gross domestic product. A three day halt could therefore shave off millions of pesos in economic activity.

Moreover, the strike may influence inflation. The World Bank’s fuel price data shows a strong correlation between transport costs and consumer price indices for food and goods.

Public reaction and commuter challenges

Commuters expressed frustration on social media, with many sharing photos of crowded streets and long queues at remaining transport hubs. Some employers announced flexible work arrangements to ease the burden on staff who rely on public transport.

Alternatives and coping strategies

In response to the shortage, several ride‑hailing platforms reported a surge in demand. Bicycle rentals and walking saw a modest increase, especially for short trips. Carpooling initiatives organized through community groups also provided temporary relief.

Local businesses near major terminals offered free water and snacks to stranded passengers, highlighting the community spirit that often emerges during crises.

What lies ahead for Manila’s transport sector

The outcome of the strike will likely shape policy decisions for months to come. If the government agrees to tax reductions or subsidies, other sectors that depend on fuel may also seek similar relief.

Long term, experts suggest that diversifying energy sources for public transport, such as adopting electric vehicles, could reduce vulnerability to oil price shocks. The Reuters coverage of Manila transport strike notes that several pilot projects for electric jeepneys are already underway, but scaling them will require substantial investment.

For now, commuters, drivers and officials remain in a delicate balance, each hoping for a resolution that restores mobility without compromising livelihoods.