Electric Vehicles: A Solution Amid Fuel Market Uncertainty?

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Amid rising tensions in the Middle East affecting international fuel prices, some suggest electric vehicles (EVs) could mitigate the impact on the country's economy. Sharon Garin from the Department of Energy highlighted their potential role in transforming public utility vehicles (PUVs).

The controversial PUV modernisation programme aims to replace traditional fuel-powered vehicles with EVs. Although promising in theory, its execution has faced multiple delays since former President Rodrigo Duterte's tenure, often leaving small-time jeepney drivers to shoulder the financial burden.

Transport Secretary Vince Dizon acknowledged the ongoing programme is fraught with challenges. “We cannot fast-track this without addressing basic economic viability issues,” he stated. High vehicle costs and difficulties accessing maintenance and spare parts exacerbate the problem.

While budgets allow for some subsidies, Dizon noted these may not sufficiently cover the modernisation costs. He emphasised a market-driven approach, ensuring the economics must make sense for operators to adopt EVs. Incentives and financial feasibility are crucial for the programme’s success, ensuring transport firms can still profit.

Garin and Dizon's insights reflect a cautious optimism, underlining the balance needed between ambitious policy and realistic implementation. The road to EV integration in public transport might be long, but it promises a more stable future amid fluctuating fuel markets.

  Adapted by ASEAN Now from PhilStar 2025-06-26