Senate Committee on Finance chief Senator Sonny Angara on Wednesday urged the Departments of Transportation (DOTr) and Agriculture (DA) and other agencies concerned with the distribution of fuel subsidies to be prepared to distribute fuel vouchers to the transport and agriculture sectors affected by the continuing increase in oil prices.
Angara said there is a total of P8-billion for fuel subsidies to members of the transport, agriculture and fisheries sectors under the 2022 General Appropriations Act (GAA). Included in the national budget is a P2.5-billion for financial assistance for qualified public utility vehicles (PUV), taxi, tricycle and full-time, ride-hailign and delivery services drivers.
Another P500-million is available for the grant of fuel discounts to farmers and fisherfolk, who are just as affected by the ongoing oil price hikes, he said.
On top of the P3-billion total for the transport, agriculture, and fisheries sectors, Angara also said there is another P5-billion lodged under the unprogrammed appropriations also for fuel subsidies.
“The trigger for the release of the fuel subsidies is when the average price of Dubai crude oil reaches or exceeds $80 per barrel for three months,” Angara said in a statement.
“The price is now at over $100/barrel so the release of the subsidies should be forthcoming,” he stressed.
Congress, he said, has given the Executive department authority to provide up to P5-billion for fuel subsidies once funding becomes available. The funds could come from government borrowings or from excess revenue collections.
“We have seen in the past few years that funds placed under unprogrammed appropriations have consistently been released especially if the specified purposes are fully backed by the Executive,” he said.
He further said the DOTr, DA, and other similar agencies, should ensure they have the list of recipients ready and should implement the fuel subsidy program smoothly and quickly.
“They have distributed cash aid and similar subsidies in the past so coming up with the guidelines for the current program should not be difficult,” Angara emphasized.
“Matindi na ang naging epekto ng pagtaas ng presyo ng langis sa buhay ng mga tsuper, magsasaka at mangingisda. Nabawasan ang kinikita nila kada araw dahil sa dagdag na gastos sa langis (The cost of oil price increases has negatively impacted the life of drivers, farmers and fishermen. They lose a huge chunk of their daily earnings due to the high cost of fuel),” he added.
The lawmaker also warned the higher cost of transporting fresh produce and fish to the markets would also be felt by consumers because the hike in the cost of fuel will be reflected in the prices of these goods as a pass on expense.