Government urged to prepare fuel subsidy release

MANILA, Philippines — Sen. Sherwin Gatchalian is urging the government to prepare for the immediate release of fuel subsidies amid rising global oil prices triggered by heightened tensions between Israel and Iran.

Although the Philippines sources its oil primarily from Saudi Arabia and not Iran, Gatchalian said the volatility in international markets – especially fears over potential disruptions in the Strait of Hormuz – is pushing up local prices.

“Almost 99 percent of our oil is imported. So, if international prices increase, we will feel that,” he told radio dwIZ yesterday.

He noted that the 2025 national budget has set aside P2.5 billion in fuel subsidies for affected sectors such as public transport drivers, farmers and fisherfolk.

Under special budget provisions, the funds may be released once the price of crude oil averages $80 per barrel – a threshold that he said has already been breached multiple times.

Gatchalian also emphasized the need for close price monitoring by agencies such as the Department of Energy and the Department of Agriculture.

He added that programs like Pantawid Pasada can be swiftly reactivated, with subsidy cards already distributed to many public transport drivers.

The senator also suggested expanding the coverage to include tricycle drivers, who are equally vulnerable to fuel price hikes.

Gatchalian also addressed calls for tax relief to ease pump prices but clarified that suspending excise and value-added taxes on fuel would require new legislation, as the President does not have the power to unilaterally suspend tax collections.

On the foreign policy front, Gatchalian warned that mandatory repatriation should be considered for Filipino workers in Iran, citing the country’s limited infrastructure and rising instability.

He contrasted it with Israel, where he believes voluntary repatriation remains viable.

While he acknowledged that many Filipinos are reluctant to leave during conflict, he stressed that safety must remain the priority as the situation evolves.