As oil prices soar, DBM issues P3 billion fuel subsidy

MANILA, Philippines — The Department of Budget and Management (DBM) has released P3 billion in fuel subsidies that would benefit about 1.36 million public utility vehicle (PUV) drivers and operators amid the continued oil price hikes.

Budget Secretary Amenah Pangandaman has approved a special allotment release order and its corresponding notice of cash allocation of P3 billion to the Department of Transportation (DOTr).

The amount is meant to fund the fuel subsidy of some 1.36 million drivers and operators affected by consecutive hikes in pump prices.

Just this week, oil firms implemented another round of price hike of P0.50 per liter for gasoline and P1.20 per liter for diesel and P1.10 per liter for kerosene.

The latest increase brought the price hikes for diesel and kerosene to a ninth consecutive week, and that of gasoline to its eighth straight week.

Domestic oil prices continue to be on an upward trend, mirroring that of the international market amid reduced supply by the largest oil producing economies.

With the release, the DOTr can now obligate and transfer the funds to the Land Transportation Franchising and Regulatory Board (LTFRB), as the implementing agency, through a memorandum of agreement.

As identified and validated by the LTFRB, the 1.36 million target beneficiaries will be given a one-time fuel subsidy, with varying rates depending on the applicable mode of transportation.

The highest subsidy of P10,000 will be given to drivers of modernized public utility jeepneys and modernized utility vehicle express.

Drivers of traditional public utility jeepneys and utility vehicle express, as well as public utility buses, mini-buses, taxis, shuttle service taxis, transport network vehicle services, tourist and school transport services and filcabs will be provided P6,500 each.

Drivers of delivery services will get P1,200 while tricycle drivers will receive P1,000.

Based on a master list of eligible beneficiaries, the Land Bank of the Philippines will distribute the subsidies through the identified modes of payment, upon receipt of instructions from the LTFRB on the procedures, mechanics, and the agreed schedule.

The DOTr made the request in early August but the DBM initially returned the request due to deficiencies and inconsistencies in the DOTr’s supporting documents.

It was only this week that the DBM received the necessary documents to process the release of the subsidy.

The DOTr and the LTFRB said yesterday they are expediting the release of the fuel subsidy nationwide. — Romina Cabrera