Motorists, especially public utility vehicle (PUV) drivers, may soon receive relief as the government finalizes a fuel subsidy program to cushion the effect of soaring global fuel prices caused by the conflict in the Middle East.
The Department of Transportation (DOTr) said Tuesday that the program, distribution of which is expected to begin “as soon as possible,” covers both consolidated and non-consolidated PUV operators.
“The government wants the program to be inclusive, especially since the impact of rising fuel prices will be felt across the sector—whether consolidated or not,” the agency added.
The DOTr said it is working with the Land Transportation Franchising and Regulatory Board, Department of Energy, Department of the Interior and Local Government, Department of Information and Communications Technology, and Land Bank of the Philippines to fast-track the rollout.
As of Monday, Dubai crude averaged $75.16 per barrel—still below the $80 threshold that would automatically trigger fuel subsidy distribution.
Under the 2025 national budget, P2.5 billion has been allocated for PUV drivers, including those in taxis, ride-hailing, and delivery services.
Motorists continue to bear the brunt of sharp fuel price increases, though the Department of Energy and oil companies agreed to stagger the hikes to make them more manageable.
After meeting with government officials on Monday, oil firms agreed to implement the increases in at least two tranches on a 50:50 basis, though some may divide them further.
Some fuel retailers, including Shell and Seaoil, implemented the first tranche this morning and raised gasoline by P1.75 per liter, diesel by P2.60, and kerosene by P2.40. The second round of hikes is set for Thursday, 26 June.
Others, like Clean Fuel, also increased gasoline prices per liter by P1.75 and diesel by P2.60, with the second tranche to follow on Friday, 27 June, to “provide motorists with more leeway.”
Without the staggered rollout, pump prices would have increased by P3.50 per liter for gasoline, P5.20 for diesel, and P4.80 for kerosene in full.
