The Department of Budget and Management (DBM) said the government has P500 million remaining to allocate for additional fuel subsidies in the transport sector.

Budget Secretary Amenah F. Pangandaman said the Marcos administration is committed to address the escalating commodity prices, despite resistance from the economic team against suspending fuel taxes.

Previously, the DBM disbursed P3 billion for a fuel subsidy program intended to support public utility drivers and transport operators impacted by the recent surge in oil prices.

“We also have an amount of around P500 Million in the unprogrammed appropriations that we can release if necessary,” Pangandaman told reporters on Wednesday, Sept. 20.

Pangandaman's statement follows the rejection by Finance Secretary Benjamin E. Diokno and National Economic and Development Secretary Arsenio M. Balisacan of proposals to suspend fuel taxes for three months.

“Several actions are already in place to mitigate the effects of oil price increases, as well as the rising costs of basic commodities,” the DBM chief said.

On Tuesday, Diokno opposed the proposal to remove value-added tax (VAT) and excise taxes on oil, denouncing it as an unwise and populist action that would unfairly impact the underprivileged.

“Proposals to suspend VAT and excise taxes on petroleum products are short-sighted, ill-advised, and have serious consequences on government finances and the economy,” Diokno said.

He said that when fuel taxes are suspended, it mainly benefits the richest 10 percent of households who use nearly half of the total fuel.

On the other hand, the bottom half of households only consume about 10 percent of the fuel, he said.

Meanwhile, Balisacan concurred with Doiokno's statement, stating that the suspension of fuel taxes would be unfair and unjust.

Balisacan suggested that it would be more beneficial to the public to focus on improving and expanding the government's targeted subsidy programs instead.

The Department of Finance (DOF) estimated that the suspension could lead to a substantial revenue loss of around P72.6 billion in the fourth quarter alone, with approximately P31.2 billion in foregone VAT revenue and P41.4 billion in excise taxes at stake.

“This will also result into higher public debt-to-GDP [gross domestic product] ratio: from 61.4 percent to 61.7 percent,” the Diokno said.

The estimated revenue loss for the whole year is a significant P280.5 billion, which is equivalent to 1.1 percent of the GDP, according to the DOF.