The government will shorten the trigger period for releasing fuel subsidies to the transport sector from three months to one month, and simplify the requirements for its release, the Department of Energy said on Tuesday.

In a Malacañang Press Briefing, Energy Secretary Raphael Lotilla said this was one of President Ferdinand Marcos Jr.'s decisions during the latest sectoral meeting.

Under the current law, fuel subsidies are released to the transport sector whenever the Dubai crude oil price exceeds $80 per barrel for three consecutive months.

Lotilla said the shortening of the trigger period will allow the government to release the subsidies faster to the transport sector, which is one of the sectors most affected by the rising fuel prices.

"With this simplification or shortening of the period, we will be able to release the subsidies in a shorter period of time," Lotilla said.

"Since Congress is right now considering the General Appropriations Act, it will be included in that process. The amendment will take effect in 2024 immediately upon Congress's approval of the GAA," he added.

The DOE chief also said the government will simplify the requirements for the release of the fuel subsidies.

The release of the subsidies requires the approval of the DOE, the Department of Transportation, and the Department of Budget and Management.

Lotilla said that under the new proposal, the release of the subsidies will only require the approval of the DBM, the DOTr, and the DOE.

He said the DOTr will finalize the list of beneficiaries of the fuel subsidies for those with franchises, the Department of Interior and Local Government for tricycle drivers, and the Department of Trade and Industry for delivery service drivers.

Even though there's an effort to expedite assistance distribution, Lotilla mentioned that the fuel subsidy allocation in the 2024 national budget was decreased from P3 billion this year to P2.5 billion.

However, he believes that the reduced budget will still be adequate to meet the required funding.

"That's based on the experience on the previous year. We don't know what will be the final amount," the official said.

Other measures

Lotilla also said that the government will implement a voluntary 20 percent ethanol blend for gasoline, which is targeted for approval by the end of 2023.

He said the ethanol blend will help mitigate the rising fuel prices, as ethanol is cheaper than gasoline.

Lotilla said the President also instructed to continue the transport sector's electrification, particularly mass transport and light cargo vehicles.

He said the government will put in place charging stations and ensure that the benefits to the transport sector, particularly the drivers, will be there.

Lotilla said the President also emphasized the need to prepare the economy for the eventual manufacture of electric vehicles in the country, and linking this up with the local mining sector that will produce the minerals needed to produce batteries and other components of electric vehicles.