Gov't to disburse P3-B to cushion impact of skyrocketing fuel prices
MANILA, Philippines — The Duterte administration said it is prepared to disburse P3 billion in aid of the public transport and agriculture sector as fuel prices are expected to surge as Russia began invading Ukraine on Thursday.
In a statement on Thursday, the Development Budget Coordination Committee said it would hand out P2.5 billion in fuel subsidies to the public transport sector while the agriculture sector, which depends on fuel to operate machinery for their livelihood, will be given fuel discounts worth P500 million.
The DBCC said the fuel vouchers will be distributed to over 377,000 qualified drivers of jeepneys, UV express, taxis, tricycles and full-time ride-hailing and courier services around the country.
Oil prices were one of the first victims of Russia's military invasion of Ukraine, which saw a barrel of oil breach the $100-mark on Thursday. The impact of the geopolitical conflict could prove severe to the Philippines, a net importer of oil, and could send fuel companies here hiking prices as a result.
This week, local pump prices rose for the eighth straight week, with gasoline going up by P0.8 per liter, diesel by P0.65 per; and kerosene by P0.45 per liter.
Local pump prices were no stranger to hikes as recent months showed elevated pressure as oil producers worldwide boosted prices as a result of increased demand following the economic reopening of most countries. For the Philippines, the national government implemented subsidies in past months to cushion the impact of pricey oil for a transport sector reeling from the effects of pandemic curbs on their livelihoods.
Based on the Bangko Sentral ng Pilipinas’ (BSP) latest assessment as of February 17, the Dubai crude oil price for this year is projected to average at $83.3 per barrel. The BSP, however, forecasted prices to decelerate to $79.0 by the end of this year based on the latest oil futures.
"The DBCC remains committed to taking decisive action to ensure the unhampered supply of goods and services despite the rising oil prices amid the pandemic," the DBCC said.
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