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The Philippines
This Week in AsiaEconomics

Philippines’ iconic jeepneys face rocky road to go electric

Observers point to the high costs of owning an e-jeepney and a lack of government support in enabling the electric shift

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A petrol station worker prepares to refuel a jeepney in Quezon City, Metro Manila, the Philippines, in March. Photo: EPA
Sam Beltran
For generations, jeepneys – brightly painted minibuses that are among the Philippines’ cheapest and most used forms of public transport – have run on diesel, but recent fuel shocks are forcing thousands of small operators and drivers to weigh volatile prices against the debt needed to go electric.

Diesel prices spiked anew by nearly 5 pesos this week, as renewed tensions in the Gulf threatened to strain the country’s public transport sector, giving new urgency to the uneven shift towards e-jeepneys.

Since the Iran conflict began in late February, diesel prices have soared, leading to an exodus of jeepney drivers from the road. Fuel costs in Metro Manila hit a high of 114 pesos (US$1.90) per litre in March – nearly one-sixth of the minimum daily wage rate for non-agricultural workers in the Philippine capital region.

Inflation settled at 6.4 per cent in June, while diesel prices rose to 76 pesos this week from 72 pesos a week ago – well above pre-conflict figures of 60 pesos per litre.

The latest increase has put the country’s public transport sector on edge while also highlighting a deeper dilemma: electric jeepneys promise lower running costs, but remain difficult for many small operators and drivers to afford.

Workers declog a drainage canal beside a petrol station displaying fuel prices in Manila, the Philippines, on Monday. Photo: EPA
Workers declog a drainage canal beside a petrol station displaying fuel prices in Manila, the Philippines, on Monday. Photo: EPA

“We’re expecting diesel to climb again. 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. This would be a huge blow to the transport sector,” said Liberty de Luna, national president of the Alliance of Concerned Transport Organisations (ACTO) in the Philippines.

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