Philippines’ iconic jeepneys face rocky road to go electric
Rising diesel prices in the Philippines, exacerbated by tensions in the Gulf, are putting immense financial pressure on jeepney drivers. While electric jeepneys offer a potential long-term solution, the high cost of transition remains a significant barrier for small operators.
Why it matters
This situation illustrates the difficult trade-offs developing nations face when trying to modernize public transport infrastructure amidst global energy price volatility.
For generations, jeepneys – brightly painted minibuses that are among the Philippines’ cheapest and most widely 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 by nearly 5 pesos this week as renewed tensions in the Gulf threatened to strain the country’s public transport sector, adding fresh urgency to the uneven shift towards “e-jeepneys”.
Since the Iran conflict began in late February, diesel prices have soared, prompting 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 capital region.
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