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Boat passengers on certain routes will get relief from fare hikes as the Maritime Industry Authority will implement a subsidy program that will cover increases in domestic shipping rates
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The Lakbay Alalay ng Gobyerno (LAYAG) Program 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
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The Department of Transportation has allocated P200 million of the P1 billion budget for the service contracting program for maritime transport
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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
Boat passengers on certain routes will get relief from fare hikes as the Maritime Industry Authority (MARINA) will implement a subsidy program that will cover increases in domestic shipping rates.
The Lakbay Alalay ng Gobyerno (LAYAG) Program under MARINA Advisory (MA) No. 2026-20 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.
This means passengers will pay the rates as of February 28 and any increase set by shipping companies after that date will be covered by the government.
MARINA had earlier allowed a 40% maximum rate increase for passenger and cargo rates.
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.
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.
Covered routes include the following:
- Batangas City – Puerto Galera, Oriental Mindoro
- Batangas City – Calapan, Oriental Mindoro
- Iloilo City – Guimaras Island
- Lapu-Lapu City – Olango Island
- Cebu – Negros Oriental
- Zamboanga City – Basilan
- Davao City – Samal Island
- Surigao – Dinagat Island
The criteria for identifying the covered routes include the commuter maritime transport services with a one-way travel time of not more than two hours, with high density passenger traffic, and no alternative mode of transport.
To be eligible for the program, requirements include the following:
- Ship/boat operator must have a valid Certificate of Public Convenience (CPC) in the identified route;
- Qualified ships must have valid Passenger Ship Safety Certificate (PSSC) and insurance coverage during the program period; and
- Ships must be operational in the identified routes upon implementation of the program.
Eligible operators will be issued with a Notice of Eligibility and will sign a service contracting agreement (SCA) with MARINA.
Actual implementation of the program will commence on the day following the signing of the SCA with the duration of implementation specified in the SCA.
The execution of SCA will, however, be subject to the prior receipt of the corresponding fund transfer from the DOTr.
Payment of the subsidy will be made within three days from receipt of the certification from the MARINA regional office and through the issuance of check and deposit to the bank accounts of the ship/boat operator.
After one week of implementation, MARINA will review and assess the utilization of funds on a daily basis to ensure timely issuance of Notice of Termination.
Aside from the LAYAG Program, MARINA has also approved regulatory relief and support measures to cushion domestic shipping from the impact of rising global fuel prices. These include 75% discount on select regulatory fees, reduction of annual tonnage fee to P1 per gross tonnage for Philippine-registered vessels above 15 gross tonnage for calendar year 2025, payable in 2026; and temporary suspension of the implementation of the new omnibus schedule of fees and charges.
READ: MARINA approves 75% discount on select fees, other relief measures
Shipping companies/operators are also allowed to reduce or limit trips of ships, consolidating passengers and cargo volume to optimize load capacity of ships, subject to MARINA’s approval.— Roumina Pablo
