Philippines readies fuel subsidy program as oil prices soar

President Ferdinand Marcos Jr. ordered the distribution of fuel subsidies, said Mon Ilagan, spokesperson for the Department of Transportation. Ilagan told DZMM that the fuel subsidy program had already received certification from the Department of Energy. 

"Pinapaspasan yung guidelines ng pag-didistribute ng fuel subsidy program. Agad po natin ilalabas yung listahan ng qualified na benepisyaryo kapag na-finalize ito ng LTFRB [Land Transportation Franchising and Regulatory Board] at DICT [Department of Information and Communications Technology]," DOTr Assistant Secretary and Spokesperson Mon Ilagan said on Bagong Pilipinas Ngayon. 

PUV drivers and their operators, including those using traditional jeepneys, UV Express, buses, and tricycles, as well as delivery riders. The list of qualified beneficiaries will be sent to regional directors for verification and certification, he added.

Ilagan said the Department of Energy has already given the DOTr certification to tap the P2.5 billion funds under the 2025 budget for the fuel subsidy program.

"Sa utos ng kalihim Secretary Dizon, sa oras mag take effect yung price hike, ang estimate po natin na papatak na P5 sa diesel at P3 sa gas, ay kaagad ipapalabas yung tulong sa fuel subsidy," Ilagan said.  

"In a few weeks, kapag tumaas na po talaga ang presyo ng langis may nakaabang na P2.5 billion na pondo para sa fuel subsidy program. At yan ay hahatiin po ng mga ahensya. Ngayon po ay patuloy silang nag-uusap at nag-dedeliberate para sa possible beneficiaries niyan," he explained.

Transport group Manibela wants the subsidy to be at least P8,000 per month, citing the previous amount of P6,500. Manibela Chairperson Mar Valbuena said he hopes the subsidy will be rolled out by July 10.

Aside from the LTFRB, the DOTr is also coordinating with the Department of Interior and Local Government (DILG) to assist tricycle drivers, as well as other agencies for ride-hailing services and other affected stakeholders. 

"May mga klase o mode ng transportation na maaaring makita na may mas pangangailangan ng fuel subsidy depende sa konsumo ng produkto," Ilagan noted.  

Last week, Transportation Secretary Vince Dizon told LTFRB Chairman Teofilo Guadiz he is "not ready to entertain or talk about any fare hike" to not burden commuters, prioritizing the fuel subsidy release.

The DOE earlier said diesel prices may increase to P5 per liter due to the ongoing conflict between Israel and Iran.