About 10 million sea passengers are expected to benefit from a new government fare subsidy program aimed at keeping maritime travel affordable despite rising fuel costs.
The Maritime Industry Authority (MARINA) has launched the Lakbay Alalay ng Gobyerno Program, or LAYAG, to cushion commuters from approved fare increases on key domestic sea routes while helping ship and boat operators sustain their services.
The program, issued through MARINA Advisory No. 2026-20, will be implemented under the government’s Service Contracting Program. It will cover fare differentials on selected high-traffic and essential routes affected by fuel price volatility linked to global energy disruptions.
Under the scheme, passengers will continue paying their pre-increase base fares, while the government directly subsidizes participating operators for the approved fare adjustments.
MARINA said the setup is designed to protect ordinary commuters who rely on boats and ferries for work, school, trade, medical needs, and daily travel between island communities.
MARINA Administrator Sonia Malaluan said the program responds to the burden placed on passengers by the energy crisis, adding that the government is stepping in to ensure that sea travel remains uninterrupted and within reach.
The subsidy will cover 11 domestic routes, including round-trip services between Batangas and Puerto Galera, Batangas and Calapan, Jordan Wharf in Guimaras and Parola Wharf in Iloilo City, and Buenavista Wharf in Guimaras and Parola Wharf in Iloilo City.
Also included are routes connecting Sta. Rosa on Olango Island to Angasil in Lapu-Lapu City; Liloan in Santander, Cebu to Sibulan in Negros Oriental; Zamboanga City to Basilan; and Sta. Cruz on Talicud Island to Poblacion Kaputian.
The program will also cover trips between Surigao City and San Jose in the Province of Dinagat Islands, Socorro and Hayanggabon in Surigao del Norte, and Socorro and Dapa in Surigao del Norte.
A total of 33 shipping operators will participate in the program, supporting the operation of 93 passenger vessels along the covered maritime corridors.
MARINA said the subsidy will be computed based on verified passenger volume per trip and the approved fare differentials under existing regulations. This is intended to ensure that operators are compensated fairly while passengers are shielded from higher fares.
The program will be implemented under Republic Act No. 12314, or the FY 2026 General Appropriations Act, and Department of Transportation Department Order No. 2026-008.
As the rollout begins, MARINA said it will work closely with ship operators, regional offices, and partner-agencies to ensure that subsidies are released based on verified passenger data and transparent audit procedures.
The agency said the LAYAG Program forms part of broader government efforts to protect commuters, support domestic shipping operations, and preserve reliable maritime links for island and coastal communities.