Fuel subsidy possible if global oil prices surge

Fuel subsidy possible if global oil prices surge | Daily Tribune

The Philippine government is prepared to provide fuel subsidies to public utility vehicle (PUV) drivers, farmers, and fisherfolk if global crude oil prices rise again, Malacañang said Friday.

In a press conference, Palace Press Officer Atty. Claire Castro explained that the decision to grant subsidies will depend on actual market developments.

Castro also noted that the government is closely monitoring the situation in Israel and Iran amid heightened Middle East conflict.

“Patuloy pong nagmo-monitor ang pamahalaan kung ano ba ang nangyayari sa isyu sa Israel at Iran (The government continues to monitor what is happening with the issue in Israel and Iran),” she said.

She also assured the public that the welfare of transport workers, farmers, and fisherfolk is President Ferdinand R. Marcos Jr.’s top priority.

“May mga pagkakataon po siguro na ganitong klaseng sitwasyon ay hindi po agad makakapag-decide ang Pangulo dahil depende po ito sa nagiging sitwasyon sa kasalukuyan (There may be times when in this kind of situation, the President will not be able to decide immediately because it depends on the current situation),” Castro emphasized.

Meanwhile, Castro emphasized that currently, there is no need for a fuel subsidy since the global crude oil price is only between USD 65 and USD 68 per barrel.

"So, hindi po agad ito mati-trigger. Pero tandaan po natin, kung anuman po ang maitutulong sa kakayanan at naaayon sa batas natin at sa rules, hindi naman po ito ipagkakait ng pamahalaan (So, this won't be triggered right away. But let’s remember, whatever assistance is possible within our means, in accordance with the law and the rules, the government will not withhold it),” she said.

Marcos earlier said there is no immediate need to implement the Fuel Subsidy Program (FSP), as global oil prices have yet to rise significantly.

The government has allocated P2.5 billion for the FSP to support more than 1.1 million transport workers if global oil prices exceed the USD 80 per barrel mark amid the Israel-Iran conflict.

The program is expected to benefit approximately 1,132,407 individuals, including 258,712 public utility vehicle operators and drivers, 723,695 tricycle drivers, and 150,000 ride-hailing app drivers.