The Department of Budget and Management (DBM) has released P3 billion to fund the government’s fuel subsidies for the public utility vehicle (PUV) and the agriculture sector.
DBM Officer-in-Charge Undersecretary Tina Rose Marie L. Canda said on Thursday, March 10, that they released P2.5 billion for the fuel subsidies while the remaining P500 million will go to the agriculture sector.
Canda said the funds were released to the Department of Transportation and the Department of Agriculture.
The P2.5 billions funds in fuel assistance will benefit to over 377,000 qualified PUV drivers, and the P500 million will provide assistance through fuel discounts to farmers and fisherfolk.
The fuel assistance wherein subsidies in the form of vouchers will be given to PUV drivers who are operating jeepneys, UV express, taxis, tricycles, and other full-time ride-hailing and delivery services nationwide.
Last Feb. 24, President Duterte’s economic managers announced that the government will instead provide targeted relief assistance and support to sectors affected by the skyrocketing oil prices.
The announcement comes amid calls to suspend taxes on petroleum to bring down pump prices.
Earlier, the inter-agency Development Budget Coordination Committee (DBCC) said that aside from the P3 billion aid, the government was also pursuing a holistic value chain approach to ensure an adequate and affordable food supply amid the rising oil prices.
Based on the Banko Sentral ng Pilipinas’ assessment as of Feb. 17, the Dubai crude oil price for this year is projected to average at $83.3 per barrel. Nonetheless, the DBCC expects it decelerate to $79 by the end of this year based on the latest oil futures.
Last October, the Department of Finance cautioned the Congress in suspending excise tax on petroleum products as it will incur substantial revenue losses for the government and may affect the budget for coronavirus recovery measures.
Finance Undersecretary Antonette C. Tionko said the proposed suspension of fuel taxes would result in P10.95 billion in foregone revenue per month.