Gov't prepares fuel subsidy rollout as oil prices remain volatile

GMA Network

3 days ago

The government is preparing to roll out a new round of fuel subsidies for public utility vehicle (PUV) drivers and operators—with or without franchise consolidation—should global oil prices breach the $80 per barrel threshold, a key official said during the Bagong Pilipinas public briefing.
In a move seen as both proactive and inclusive, the Land Transportation Franchising and Regulatory Board (LTFRB) announced it is finalizing guidelines to ensure swift and equitable distribution of subsidies.
A ?2.5 billion allocation has been earmarked for the subsidies under the 2025 national budget.
'We are getting ready,' said LTFRB spokesperson Ariel Inton, emphasizing that even though oil prices recently dipped to $69 per barrel, volatility—especially in the Middle East—could lead to a rapid spike.
'Mas maigi nang handa (It's better to be prepared, because anything can happen.'
No more consolidation requirement
In a major departure from previous policy, Inton confirmed that PUV drivers and operators no longer need to be consolidated to receive fuel subsidies. This clarification comes amid mounting concerns from transport groups that non-consolidated operators could be excluded.
'There is a clear statement from the Department of Transportation (DOTr) that consolidation is not a requirement," he said.
'Kasama po sila. Kung paano, hintayin natin sa ilalabas na guidelines," he added.
(They will be included. As for how, let's wait for the upcoming guidelines.)
New technology for transparent payouts
With thousands of drivers expected to be eligible, the government is also eyeing digital platforms and e-wallet systems for quick and transparent disbursement of aid.
'Appropriate technology is key,' Inton noted, citing past distribution methods like e-cards and fuel coupons as possible templates.
'Pag may nauna at may naiwang wala pa, it creates strong sentiment. Kaya kailangan if I may use the word, forthwith, kaagad-agad."
(If some receive aid first and others are left behind, it can cause frustration. That's why we need to act immediately, or as soon as possible.)
The Department of Information and Communications Technology (DICT) will be tapped to help facilitate smooth and real-time payouts, minimizing delays and confusion.
According to the LTFRB, the $80 per barrel international oil price remains the benchmark for subsidy release. Although recent prices have hovered around $75 to $76 due to heightened tensions in the Middle East, the Department of Energy has already requested the DOTr to initiate preparatory actions.
'In effect I am saying, ang ahensya is finalizing everything para ready po tayo.'
(In effect, I'm saying the agency is finalizing everything so we are prepared.)
If the threshold is breached, subsidies can be disbursed immediately—targeting jeepney, bus, and UV Express operators and drivers.
The government is using the planned subsidy as a buffer to delay fare hikes, which would otherwise directly affect commuters.—LDF, GMA Integrated News