Govt. preparing Php2.5B for fuel subsidies

fill fuel, colorful fuel gasoline dispenser  background energy c

The government will be allotting Php2.5 billion for fuel subsidies for the public transport sector as oil prices continue to rise amid the ongoing conflict between Russia and Ukraine. 

In a report by Rappler, the Development Budget Coordination Council (DBCC) said that the amount will be used for the Department of Transportation’s fuel subsidy program, where 377,000 drivers will be given fuel vouchers. 

The council added that the government is also ready to provide subsidies to farmers and fisherfolk.

The DBCC is an inter-agency body that recommends to the President the approval of government spending for economic and social development, among others. Chaired by the Secretary of Budget, its members comprise the heads of the Department of Finance, National Economic and Development Authority, and the Bangko Sentral ng Pilipinas. The Executive Secretary is also a member representing the Office of the President.

Gasoline prices are expected to rise by up to Php1 per liter, while diesel and kerosene would increase by Php0.80/liter this Tuesday in the wake of Russia’s attack on Ukraine. Energy officials had said that oil prices will continue rising amid the ongoing conflict. 

Last Thursday, the price of Brent crude futures jumped to $102.44 (around Php5,200) per barrel, the first time since 2014 global oil prices exceeded the $100 per barrel mark. 

Senate energy committee chairman Sherwin Gatchalian is eyeing to file a bill that will institutionalize the government’s “Pantawid Pasada” program, which he said is more economically viable than suspending the fuel excise tax, which the Department of Finance earlier rejected