Palace: Budget Has P3-Billion Allocation For Fuel Subsidies

Malacañang has assured the public that at least P3 billion has been allocated in this year’s national budget for fuel subsidies and discounts that are intended to provide relief to sectors hit most by oil price hikes.

Acting presidential spokesman Karlo Nograles said the P5.024-trillion national budget contains a P2.5-billion appropriation for a fuel subsidy program under the transportation department.

“Under the GAA or the General Appropriations Act, P2.5 billion is appropriated and to be used to provide financial assistance and fuel vouchers to qualified public utility vehicles, taxi, tricycle, full-time ride-hailing delivery service drivers nationwide as identified and validated by the LTFRB (Land Transportation Franchising and Regulatory Board),” Nograles said at a press briefing last Tuesday, Feb. 15.

The fuel subsidy program would be implemented when the average Dubai crude oil price based on Mean of Platts Singapore reaches or exceeds $80 per barrel for three months.

“There are conditions set before the fuel subsidy is triggered. But apart from that, before it (oil price hike) happened, various mechanisms that will help those who are severely affected were already being discussed,” Nograles said.

The implementation of the fuel subsidy program would be subject to the guidelines issued by the transportation, energy and budget departments, he added.

Nograles was asked to react to the decision of oil firms to raise prices for the seventh straight week because of global supply issues. The energy department previously said the oil price hikes may last until May.

He said another P500 million has been allocated to provide fuel discounts for farmers and fisherfolk under the agriculture department’s budget. The discount will also be given once the average Dubai crude oil price based on Mean of Platts Singapore hits or surpasses $80 per barrel for three months straight.

To be qualified for the discount, beneficiaries should be owners and operators of agricultural and fishery machinery individually or through a farmer organization, cooperative or association. The fishing vessels of fisherfolk who wish to avail themselves of the discount should be duly registered in the government’s integrated boat registry system. Farmer beneficiaries are also required to present proof that they own farm machinery. The fuel discounts would be distributed through the regional field offices of the agriculture department and the fisheries and aquatic resources bureau.

Nograles said the trade department has also updated the suggested retail prices of basic and prime commodities to mitigate the impact of higher oil prices.