DBM: Nothing ‘irregular’ with fuel subsidy allocations
MANILA, Philippines — The Department of Budget and Management (DBM) dismissed speculations of irregularity in the budget for fuel subsidies.
Transport group Piston had criticized the government’s handling of the fuel crisis, saying it had failed to manage the impact of the Middle East fuel crisis. The group also raised concerns about the Marcos administration’s use of funds from the 2025 General Appropriations Act (GAA), saying the budget was not utilized at the appropriate time and that additional funds are still owed to the transport sector.
In a statement to Philstar.com, DBM Undersecretary Goddes Hope Libiran said that “there is nothing irregular, improper, or unlawful in the utilization of the fuel subsidy allocation referenced,” calling the claim “misplaced and misinformed.”
Libiran said the DBM was transparent that P2.5 billion was sourced from the 2025 GAA, explaining that the funds had a special provision stating that the subsidies were conditional on a trigger: Dubai crude oil prices surpassing $80 per barrel.
“No such trigger condition existed in 2025 and therefore, prudence dictated that the funds remain unobligated. This is not a lapse. It is precisely how fiscal discipline and conditional appropriations are designed to function under the law,” Libiran said.
This trigger only occurred in 2026, when the US and Israel reportedly attacked Iran, prompting Tehran to close the vital Strait of Hormuz.
Libiran said the use of the 2025 GAA funds is a result of continuing appropriations and fiscal management.
“The DBM does not — and will never — release funds outside of what is authorized by law, properly requested by implementing agencies and supported by complete and compliant documentation,” Libiran said.
The government has rolled out a one-time fuel subsidy for transport workers who have been affected by the oil crisis. However, transport groups have criticized the small amount released, as well as the slow and inconsistent rollout.
In response, transport groups are set to mount another transport strike within the week.
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