Drivers say VT15,000 fuel subsidy not enough

April 28, 2026 11:06 pm | Posted in Business News | Share now TwitterFacebook

By Doddy Morris.

A dispute has emerged between bus operators and the Government over the adequacy of the current VT15,000 fuel subsidy over two months, with drivers arguing it is insufficient to meet daily operating costs, while the Government maintains that bus fares must remain at VT150.

A bus driver speaking on behalf of operators said the subsidy does not reflect the real cost of running public transport services, pointing to fuel consumption as a major concern.

“For the subsidy, a clear example is during COVID-19 when the Government provided business subsidies. It failed because it did nothing for businesses, and most ran down,” the driver said.

“If you use common sense, VT15,000 is not enough. If you drive a Hyundai bus, it takes around VT11,000 just to fill the tank,” the driver added, stressing that little margin is left after fuel expenses.

However, the Government has defended the subsidy, saying it is a targeted intervention designed to ease pressure from rising fuel prices and protect commuters from fare increases.

“The VT15,000 fuel subsidy is a substantial commitment from the Government to help bus and taxi operators absorb the current spike in fuel prices, with the clear goal of keeping fares at VT150 for the public,” the Government said.

It also clarified that recent discussions about increasing bus fares to VT200 were already in circulation before the latest fuel price changes.

“First, the proposal to raise bus fares to VT200 predates the current fuel increase. Using today’s fuel prices to justify that increase is not appropriate, especially for a service that is public and essential,” the Government said.

Officials further noted that global fuel prices remain outside local control, but policy responses are not.

“What is within our control is how we respond. This subsidy is a targeted measure to ease pressure on drivers and protect passengers from higher costs,” the statement said.

The Government also said the subsidy is temporary support and not intended to cover loan repayments or increase operator income.

“The subsidy is not designed to cover loan repayments or to become a new revenue stream for vehicle owners. It is temporary relief to keep the transport system stable and affordable while we work through this period,” it said.

Authorities have called on transport operators and associations to cooperate with the Government in the interest of the public, warning that fare increases would have wider economic impacts.

“Raising fares now will have knock-on effects across the economy that will hurt families, students, and workers the most,” the Government said.

It further clarified that no fare increase can proceed without formal approval from the Public Land Transport Authority (PLTA) Board.

“Because of these reasons, bus fares cannot be increased unless the PLTA Board has approved it,” the Government said.