10M boat passengers seen to benefit from fare subsidy program
Image from Maritime Industry Authority
  • An estimated 10 million travelers by sea are set to benefit from government fare subsidies to be implemented by the Maritime Industry Authority starting May 25
  • In response to fluctuating fuel prices driven by global energy disruptions, the Lakbay Alalay ng Gobyerno Program aims to ease the burden on commuters who rely on maritime transport, while sustaining the operations of ship and boat operators
  • The government will provide fare subsidies to participating operators covering approved fare increases on 11 identified high-traffic and essential routes
  • The program will be participated in by 33 shipping operators, supporting 93 passenger vessels operating along these routes

An estimated 10 million sea passengers are set to benefit from government fare subsidies to be implemented by the Maritime Industry Authority (MARINA) rolls starting May 25.

In response to fluctuating fuel prices driven by global energy disruptions, the Lakbay Alalay ng Gobyerno (LAYAG) Program aims to ease the burden on commuters who rely on maritime transport, while sustaining the operations of ship and boat operators, MARINA said in a statement.

Under MARINA Advisory (MA) No. 2026-20, LAYAG is a net service contracting scheme that will cover the latest allowable required rate adjustment or the fare increase of domestic ship/boat operators as of February 28, 2026, whichever is lower.

The LAYAG Program is part of the Department of Transportation’s (DOTr) service contracting program (SCP), which is one of the components of the administration’s broader package of relief measures for Filipinos amid rising oil prices. DOTr, MARINA’s mother agency, earlier said it has allocated P200 million of the P1 billion budget for the SCP for maritime transport. The other P800 million is being used for road transport.

MARINA administrator Sonia Malaluan said the program is anchored on compassion for commuters affected by rising costs related to high fuel prices. 

According to MA No. 2026-20, the SCP aims to provide financial assistance to passengers through a subsidy that will cover the passenger fare increases, sustain maritime connectivity for short distance routes and prevent disruptions in people’s mobility.

The LAYAG Program will initially cover only ships/boats carrying passengers along identified routes until the fund allocated for this purpose has been fully utilized.

The fare subsidy will cover the rates for economy or regular accommodation class.

Under the LAYAG Program, the government will provide fare subsidies to participating operators covering approved fare increases on 11 identified high-traffic and essential routes, including:

  • Batangas – Puerto Galera
  • Batangas – Calapan
  • Jordan Wharf, Guimaras – Parola Wharf, Iloilo City
  • Buenavista Wharf, Guimaras – Parola Wharf, Iloilo City
  • Rosa, Olango Island – Angasil, Brgy. Mactan, Lapu-Lapu City
  • Liloan, Santander, Cebu – Sibulan, Negros Oriental
  • Zamboanga City – Basilan
  • Cruz, Talicud Island – Poblacion Kaputian (IGACOS)
  • Surigao City, Surigao del Norte – San Jose, Province of Dinagat Islands
  • Socorro, Surigao del Norte – Hayanggabon, Surigao del Norte
  • Socorro, Surigao del Norte – Dapa, Surigao del Norte

The program will be participated in by 33 shipping operators, supporting 93 passenger vessels operating along these routes.

The subsidy will be computed based on actual passenger volume per trip and approved fare differentials under MARINA regulations, ensuring that passengers continue to pay only the pre-increase base fare while operators are compensated through government support.

As implementation begins, MARINA said it will closely coordinate with ship operators, regional offices, and partner agencies to ensure swift rollout, with subsidies released based on verified passenger data and transparent audit procedures.

READ: MARINA rolls out subsidy program for domestic passenger boats

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