In a bid to counter the impact of soaring oil prices, President Marcos has proposed reducing the activation period for fuel subsidies from three months to just one month, said the Department of Energy (DOE).
In a report by the Manila Bulletin, Energy Secretary Raphael P.M. Lotilla disclosed that the Palace aimed to amend the language of the 2024 General Appropriations Act related to fuel subsidies for the transportation sector to minimize the activation period and streamline the increased requirements.
Lotilla explained that subsidies for the transportation sector are activated when the Dubai crude oil price per barrel remained above $80 constantly for three months. If streamlined, this will be distributed within a shorter time frame, he added.
These subsidies would primarily impact the transportation sector, particularly public utility vehicles (PUVs) like tricycles and jeepneys.
Furthermore, Lotilla detailed the simplification of the requirements for releasing fuel subsidies. The guidelines for the increased requirements would be mutually formed by several government agencies, including the Department of Budget and Management (DBM), the Department of Transportation (DOTr), and the DOE.
He explained that these subsidies will be allocated after the DOTr finalizes the list of beneficiaries for franchised operators.
Later, the Department of Interior and Local Government (DILG) will oversee the distribution for tricycle drivers, while the Department of Trade and Industry (DTI) will handle delivery service drivers.
Meanwhile, the government’s initiative to electrify the transport sector will involve the establishment of more charging stations, with the expectation of greater benefits for the transport sector.
