For generations, jeepneys—brightly painted minibuses and a staple of Philippine public transport—have relied on diesel fuel. However, recent fuel price shocks are forcing thousands of small operators and drivers to balance volatile diesel prices against the financial burden of switching to electric jeepneys.

Diesel prices surged by nearly 5 pesos this week amid renewed tensions in the Gulf, intensifying pressure on the country’s public transport system and accelerating the uneven shift toward electric jeepneys (e-jeepneys). Since the Iran conflict began in late February, diesel prices have soared, prompting many jeepney drivers to leave the roads.

In Metro Manila, fuel costs peaked at 114 pesos (US$1.90) per litre in March—equivalent to nearly one-sixth of the minimum daily wage for non-agricultural workers in the capital region. Inflation stood at 6.4% in June, while diesel prices recently climbed to 76 pesos per litre from 72 pesos a week prior, significantly above pre-conflict levels of 60 pesos.

The latest price hikes have unsettled the public transport sector, highlighting a critical dilemma: although electric jeepneys offer lower operating costs, the upfront investment remains prohibitively expensive for many small operators and drivers.

Liberty de Luna, national president of the Alliance of Concerned Transport Organisations (ACTO), warned, “This would be a huge blow to the transport sector.” She also expressed concern over fuel stockpiles, stating, “The media has been saying that the stockpile will only last over 40 days … what about us? We might see another scenario where diesel climbs to 100 pesos per litre.”

The situation underscores the complex challenges facing the Philippines as it navigates energy volatility and the transition to cleaner transportation.

Sources

South China Morning Post World