OBSTACLES to the release of fuel subsidies for the agricultural and transport sectors must be resolved immediately, Senator Imee Marcos said, as the price of crude oil breached the level of $100 per barrel Thursday.
Marcos, who chairs the Senate committee on economic affairs, said Russia’s attack on Ukraine and a possible embargo on Russian oil and gas exports will further push up world oil prices and make local fuels more expensive.
The senator also urged the Department of Budget and Management (DBM) “not to wait for April” before fuel subsidies are made available to drivers of public utility vehicles, taxis, tricycles, and ride-hailing and delivery services.
Under Special Provision No. 8 of the General Appropriations Act 2022, the government can release Php2.5 billion in fuel subsidies for the transport sector when the average price of Dubai crude reaches $80 per barrel within three straight months.
But Presidential spokesman Karlo Nograles said the DBM has not yet decided on how to interpret the three-month time frame that will trigger the release of fuel subsidies.
“We must decide at once whether the time frame starts in January this year or earlier. With oil now trading above $100 per barrel, the three-month average price of oil from November may reach $80 by next week,” Marcos said.
Marcos also called on the Department of Energy to reduce the country’s dependence on imports from the Middle East by finding other sources of oil.
“We still lack a comprehensive and coherent energy plan beyond UC Malampaya. We can explore more local sources of energy with China, Japan, Australia, and New Zealand, if we make our tax regimes more attractive for investment,” Marcos also said./PN
