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ORDINANCE NO. 2026-038

AN ORDINANCE MITIGATING THE IMPACT OF SUDDEN FUEL PRICE INCREASES, AUTHORIZING THE GRANT OF EMERGENCY FINANCIAL ASSISTANCE THROUGH FUEL SUBSIDY VOUCHERS TO LOCAL PUBLIC UTILITY JEΕΡΝΕΥ COOPERATIVES, PROMOTING THE USE OF PUBLIC TRANSPORTATION IN THE CITY, AND APPROPRIATING FUNDS THEREFOR:-

Sponsor: HON. MELVIN RAMON G. BUENAFE
On Joint and Collective Motion

WHEREAS, Section 16 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, empowers local government units to provide relief, assistance, and subsidies to vulnerable sectors during emergencies and similar situations;

WHEREAS, the sudden and sharp increase in fuel prices, triggered by the ongoing global oil crisis as of April 2026, has significantly burdened drivers and operators of public utility vehicles (PUVs), particularly jeepneys, which form a vital component of Naga City’s public transportation system;

WHEREAS, these increases in fuel costs have resulted in rising operational expenses, threatening the livelihoods of drivers and cooperative operators, as well as the affordability of public transportation for residents, especially low-income commuters;

WHEREAS, the City Government of Naga recognizes the critical role of jeepneys in ensuring mobility, sustaining economic activity, and providing access to essential services, and seeks to provide immediate relief without imposing fare increases that would further burden the riding public;

WHEREAS, the City Government likewise recognizes the need to ensure that assistance programs are implemented in a sustainable, equitable, and accountable manner through a phased approach that prioritizes the most vulnerable while progressively expanding coverage;

WHEREAS, a structured and gradual subsidy distribution system will enable effective monitoring, prevent misuse, and ensure the judicious use of limited public funds;

WHEREAS, such a mechanism reflects the City’s commitment to transparency, accountability, and fairness in delivering emergency assistance;

WHEREAS, it is the policy of the City Government of Naga to promote social equity, public welfare, and sustainable urban transportation;

Be it ordained by the Sangguniang Panlungsod of the City of Naga, that:

SECTION 1. TITLE. This Ordinance shall be known as the “Emergency Fuel Assistance and Sustainable Jeepney Transport Promotion Ordinance of Naga City.”

SECTION 2. DECLARATION OF POLICY. It is the policy of the City Government of Naga to provide emergency fuel assistance to public utility jeepney cooperatives to mitigate the impact of rising fuel prices and support the sustainability of public transport. The City shall adopt a phased and equitable approach to ensure that all operators and drivers are progressively covered, prioritizing the most vulnerable. This initiative promotes social equity, public welfare, and the use of public transportation, while helping reduce fuel consumption, emissions, and traffic congestion.

SECTION 3. OBJECTIVES. This Ordinance seeks to establish a sustainable and equitable Fuel Subsidy Program for jeepney transport cooperatives in Naga City. The Program aims to:

1. Provide targeted financial assistance to duly validated beneficiaries to mitigate the impact of rising fuel costs;
2. Ensure phased and accountable coverage of operating units under recognized cooperatives, consistent with principles of equity and fiscal sustainability;
3. Promote cooperative empowerment and inclusive governance by enhancing the organizational capacity of cooperatives and ensuring their transparent, equitable, and accountable participation in the subsidy process;
4. Support the City’s broader policy of sustainable public transport and inclusive mobility.

SECTION 4. DEFINITION OF TERMS. For the purpose of this ordinance, the following terms shall mean:

1. Public Utility Vehicle (PUV) refers to duly registered and franchised traditional jeepneys, modern jeepneys, and for-hire trimobiles that are authorized to operate within Naga City.
2. Naga City Cooperatives Development Office (NCCDO) refers to the office of the City Government of Naga designated as the lead implementing agency for the Fuel Subsidy Program. In relation to this Program, the NCCDO shall be responsible for coordinating with recognized Jeepney Transport Cooperatives in the identification and validation of beneficiaries, endorsing official lists of eligible units and drivers, and facilitating the orderly distribution of fuel vouchers. The NCCDO shall likewise monitor compliance, ensure accountability in the use of subsidies, and submit regular reports to the Naga City Urban Transport and Mobility Council (NCUTMC) for oversight and evaluation.
3. Naga City Urban Transport and Mobility Council (NCUTMC) refers to the duly constituted inter-agency policy and coordinating body of Naga City responsible for planning, regulation support, program implementation, and oversight of matters concerning urban transport systems, traffic management, and public mobility within the City.
4. Jeepney Transport Cooperative refers to a duly registered cooperative under applicable laws and regulations by the Cooperative Development Authority (CDA), composed of jeepney operators and/or drivers in Naga City, organized for the purpose of managing, operating, and sustaining public utility jeepney services, all routes within Naga City only. Such cooperatives shall be recognized as eligible beneficiaries of the emergency fuel assistance program and shall serve as the primary conduit for subsidy distribution, accountability, and compliance with the provisions of this Ordinance.
5. Gasoline Company/Station Partner refers to the duly authorized and accredited fuel company or service station within Naga City that has entered into partnership with the City Government for the purpose of supplying fuel to the beneficiaries under this Ordinance. Such partners shall be responsible for honoring fuel vouchers, ensuring transparency in transactions, and complying with the terms and conditions set forth by the City Government through the Naga City Urban Transport and Mobility Council (NCUTMC).
6. Beneficiary/ies refers to the public utility vehicle (PUV) unit/s duly registered under a recognized Jeepney Transport Cooperative in Naga City as consolidated by the Land Transportation Franchising and Regulatory Board (LTFRB), wherein each unit corresponds to a driver who shall directly receive and utilize the fuel subsidy assistance provided under this Ordinance. For purposes of implementation, the cooperative shall serve as the conduit for identifying, validating, and endorsing its member-units and drivers as beneficiaries, ensuring accountability and equitable distribution of the subsidy.

SECTION 5. FUEL SUBSIDY PROGRAM. There is hereby established a Fuel Subsidy Program in the City of Naga to mitigate the impact of sudden and continuing fuel price increases on public utility vehicles (PUV) that uses diesel as its fuel, particularly those organized under duly registered Jeepney Transport Cooperatives. The Program shall operate under the following principles:

1. Phased Coverage. Beneficiaries shall be covered gradually based on the number of units per duly registered Jeepney Transport Cooperative that will be allowed to ply, as determined by the need assessment of the Naga City Urban Transport and Mobility Council (NCUTMC). The subsidy coverage shall correspond to the validated fleet deployment approved by the NCUTMC.
2. Voucher System. Subsidy assistance shall be provided through fuel vouchers redeemable at only duly accredited Gasoline Company/Station Partners, ensuring transparency, accountability, and ease of monitoring.
3. Sustainability. The Program shall be designed to maintain fiscal responsibility and long-term viability, balancing immediate relief with the prudent use of public funds.
4. Equity and Fairness. Distribution of subsidies shall be equitable, with clear criteria for prioritization, validation, and endorsement by the Jeepney Transport Cooperatives in coordination with the NCUTMC.
5. Oversight and Monitoring. The NCCDO and NCUTMC shall oversee implementation, ensure compliance by cooperatives and partner stations, and regularly evaluate the Program’s effectiveness in achieving its objectives.

SECTION 6. PROGRAM FUNDS ALLOCATION. Funds shall be allocated by the City Government of Naga to support the phased implementation of the Fuel Subsidy Program. The subsidy amount, allocated per unit and per day, is Five Hundred Pesos (P500.00). Subsidy coverage shall correspond to the number of units per duly registered Jeepney Transport Cooperative that are authorized to ply, as determined and validated by the Naga City Urban Transport and Mobility Council (NCUTMC), based on assessed need. Other allocations, including the total amount and duration of assistance, shall be programmed with sufficient flexibility to sustain coverage and accommodate necessary adjustment. Such allocations shall be subject to monitoring, evaluation, and endorsement by the NCUTMC, in coordination with the Naga City Cooperatives Development Office (NCCDO), and shall require the approval of the City Mayor through the issuance of the appropriate resolution or executive order certifying fund availability and authorizing continuation or termination of the program.

SECTION 7. TEMPORARY SUSPENSION OF SUBSIDY. In the event that Jeepney Transport Cooperatives receive fuel subsidy or any equivalent assistance from national government agencies, other public institutions, or private persons, the implementation of the City Fuel Subsidy Program shall be temporarily suspended to allow the utilization of such assistance. The Naga City Urban Transport and Mobility Council (NCUTMC) shall determine the duration of the suspension and shall submit its recommendation to the City Mayor for appropriate action, and shall notify all affected cooperatives and beneficiaries. The program shall resume on the day immediately following the end of the suspension period.

SECTION 8. PROHIBITIONS AND PENAL PROVISIONS. Violations under this Ordinance shall be governed by pertinent laws, rules, and regulations, including Republic Act No. 10121.

SECTION 9. SEPARABILITY CLAUSE. If any provision of this Ordinance is held invalid or unconstitutional, other provisions not affected thereby shall remain in full force and effect.

SECTION 10. REPEALING CLAUSE. All ordinances, resolutions, executive orders, rules, and regulations, or portions thereof, which are inconsistent with the provisions of this Ordinance are hereby repealed, amended, or modified accordingly.

SECTION 11. EFFECTIVITY. This ordinance shall take effect ten (10) days upon approval and publication in a newspaper of local circulation and posting at the official social media account of the City Government of Naga.

ENACTED: April 8, 2026.

WE HEREBY CERTIFY to the correctness of the foregoing ordinance.

(Sgd.) LILIANO PASCUAL Acting Secretary to the Sangguniang Panlungsod

(Sgd.) GABRIEL H. BORDADO JR. City Vice Mayor & Presiding Officer

APPROVED:

(Sgd.) MARIA LEONOR G. ROBREDO City Mayor