As petroleum prices continue to rise, a recent public opinion survey by research firm Tangere, conducted from September 23 to 24, 2026, points to a significant gap in public awareness about the economics of public transportation, alongside strong support for government action.
The nationwide poll surveyed 1,200 regular bus commuters, defined as passengers who take the bus at least three to five times a week. The findings show that only 46% of regular commuters know that passenger fares are exempt from Value-Added Tax (VAT).
The survey findings spotlight a heavy hidden burden weighing down the public transport sector. While everyday commuters do not pay VAT directly on their transit fares, commercial transport entities—such as bus companies—must pay VAT and steep excise levies on the diesel fuel they buy to keep their fleets running.
To help bus operators cope with rising fuel prices, the Tangere survey revealed clear preferences from regular riders for government and structural relief:
- 87% of respondents favor removing the VAT on dieselto directly lower operating overheads for transport providers.
- 69% believe that providing direct government subsidiesis an effective solution to cushion operators against volatile fuel costs.
- Around 44% are open to accepting transport fare increases as a last-resort measure to sustain daily operations.
- Roughly 33% (one-third) are willing to tolerate fewer buses on the road and longer waiting times if it means keeping transport options afloat amid soaring operational costs.
Weighing in on the data, Tangere CEO Martin Peñaflor noted how the figures reflect both a knowledge gap and a clear public appetite for systemic solutions.
“The results of our latest survey among regular bus riders point to a significant information gap, with less than half realizing that while their fares are VAT-exempt, the bus operators themselves are heavily burdened by VAT and excise taxes on diesel,” said Martin Peñaflor, CEO of Tangere. “At the same time, the data shows that Filipinos clearly understand the severity of the operational squeeze on public transport. With an overwhelming majority calling for the removal of VAT on diesel and government subsidies, the public is looking for structural fiscal interventions that protect both commuters and transport providers.”
Legislators and transport groups are intensifying calls for the government to immediately suspend or remove fuel excise taxes and implement these targeted support measures to halt cascading inflation on food, goods, and everyday commuting.
Tangere is an award-winning, technology-driven market research company focused on understanding and capturing Filipino sentiments. It is a member of the Marketing and Opinion Research Society of the Philippines (MORES), the European Society for Opinion and Market Research (ESOMAR), and the Philippine Association of National Advertisers (PANA).
For access to the topline report and analytics from this non-commissioned study, interested parties may contact Tangere via email at [email protected].
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