The government is fleshing out the guidelines on fuel subsidies for both the transportation and agricultural sectors as global oil prices spiked because of the ongoing war between Russia and Ukraine.
The Cabinet-level Development Budget Coordination Committee (DBCC) announced the fuel subsidies on Thursday as global oil prices surpassed the $100-per-barrel threshold for the first time since 2014.
Oil companies have already raised the local cost of gasoline by P0.80 per liter, diesel by P0.65 per liter, and kerosene by P0.45 per liter, bringing the net cumulative increase in fuel prices this year to P10.85 a liter for diesel, P8.75 for gasoline, and P9.55 for kerosene.
The DBCC said it was ready to disburse P2.5 billion for fuel subsidies on top of P500 million for farmers and fisherfolk, but Malacañang said it would be up to the Department of Budget and Management (DBM) to interpret the law.
The General Appropriations Act of 2022 provides funds to bankroll fuel subsidies to the transportation and agriculture sectors, but only if crude oil prices reach $80 per barrel for three consecutive months.
The Land Transportation and Franchising Regulatory Board (LTFRB), however, said it had already asked the DBM to expedite the matter.
Retired Commodore Eduardo Gongona, Bureau of Fisheries and Aquatic Resources (BFAR) director, said they had earmarked P250 million for transport assistance for fishers.
The LTFRB, on the other hand, asked the DBM to expedite the release because successive oil price hikes have prompted transport groups to ask for a fare hike and the LTFRB has set a hearing of the petition on March 8.
Lawmakers also rushed the Duterte administration to release the funds.
Camarines Sur Rep. Luis Raymund Villafuerte Jr. even described the government response as “lackadaisical,” particularly in putting the strategic petroleum reserve plan in motion. (©Philippine Daily Inquirer 2022)
