DOE: Fuel subsidy not needed ‘for now' as crude prices drop
The government's fuel subsidy program for the public transport and agriculture sectors might not be activated after the price of crude oil in the international market went down, Department of Energy officer-in-charge Sharon Garin said on Tuesday.
Garin said that as of Tuesday morning, June 24, the average price of crude oil stood at about $69 per barrel after US President Donald Trump announced that a ceasefire between Israel and Iran was already in place. He also asked both sides not to violate it.
"Mind you, because of the lowering of the prices internationally, it might go lower also… baka hindi na kailangan ng ayuda (there might be no need for subsidy)," Garin told Palace reporters.
Under the 2025 General Appropriations Act, the P2.5 billion budget allocated for the public transport sector's fuel subsidy will be released once the average price of crude oil breaches the $80 per barrel threshold.
Garin said Trump's announcement calmed the industry.
"There's less speculation, so it went down to $69 as of this morning,' Garin said.
She said that 'technically,' the fuel subsidy is not needed at this time since the price of crude oil has yet to breach $80.
Still, Garin said the government was ready to 'distribute anytime.'
'All agencies are bracing for impact, even parang wala namang impact pero we're still preparing for it,' Garin said.
To ease the burden on motorists, fuel retailers have agreed to implement the big-time hike in petroleum prices in two tranches.
Major petroleum firms hiked the prices per liter of gasoline by P1.75, diesel by P2.60, and kerosene by P2.40, effective 6 a.m. on Tuesday, June 24, 2025.
The same price hikes will be implemented at 6 a.m. on Thursday, June 26, reflecting the second tranche of adjustments.
The Department of Transportation (DOTr), meanwhile, said it was looking to immediately release the fuel subsidy for operators and drivers of public utility vehicles when a sizable oil price hike takes effect in the country.
The fuel subsidy will be released through the Land Transportation Franchising and Regulatory Board (LTFRB), with guidelines now being finalized.
Apart from the P2.5 billion fuel subsidy for the public transport sector, the 2025 national budget also allocated P150 million in fuel subsidy for the farm and fisheries sectors at P75 million each once the crude oil price breaches the threshold. –NB, GMA Integrated News
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
GMA Network
7 hours ago
- GMA Network
Senators push for another wage hike in 20th Congress
Several senators have again filed legislative measures for the 20th Congress seeking to increase the minimum wage of Filipino workers. Among the 10 priority bills of Senator Joel Villanueva, which he filed on Monday, was the Living Wage Act, which aims to fairly adjust the minimum wage set by each regional wage board to provide a decent life for workers. 'At the end of the day, we wanted to make sure na 'yung batayan ay living wage. Ang batayan ay hindi lang basta itaas ang sweldo, kundi doon sa batayan na magkakaroon naman ng disenteng buhay 'yung ating mga manggagawa,' Villanueva said. (At the end of the day, we wanted to ensure that the basis is a living wage. The goal is not just to increase the salary but to base it on a standard that would provide our workers a decent life.) Seasoned senator Loren Legarda also included the Living Wage Act as one of her top 10 bills. Meanwhile, Senator Bong Go filed a bill seeking a P100 across-the-board daily wage hike. He said that the P50 wage increase recently approved for workers in the National Capital Region (NCR) may be 'insufficient' considering the current economic conditions. 'Kulang 'yung singkwenta sa NCR sa totoo lang. Habang tumataas 'yung bilihin ay kulang po 'yung singkwenta. Kaya sana po'y maipasa itong isang daan [piso],' Go said. (That P50 increase in the NCR is not enough, honestly, considering that the price of goods increases. So I hope that the P100 wage increase will be passed.) The Department of Labor and Employment (DOLE) on Monday announced that the NCR Regional Tripartite Wages and Productivity Board (RTWPB) issued Wage Order No. 26, which grants a P50 wage hike. This means that at least 1.2 million minimum wage earners in the NCR are set to receive higher salaries next month. Senator Robin Padilla, on the other hand, filed a bill that aims to provide a P150 minimum wage increase for employees and workers in the private sector. Senator Imee Marcos also filed the National Minimum Wage Act on Tuesday. To recall, in the 19th Congress, the proposed legislated minimum wage hike, which was pegged at P200 at the House of Representatives and P100 in the Senate, did not pass into law because the two chambers failed to reconcile them on time. President Ferdinand ''Bongbong'' Marcos Jr. will study if a legislated wage hike would result in layoffs, Palace Press Officer Undersecretary Atty. Claire Castro said Tuesday. ''Muli, pag-aaralan ito kung kakayanin ba talaga, kasi kung magdudulot naman ito ng lay-off dahil hindi kakayanin nung karamihan maliliit na mga negosyante, mas marami pong mahihirapang mga manggagawa dahil baka mawalan sila ng trabaho,'' Castro said at a briefing. (Again, he will study if this will result in layoffs. If this can't be enforced by small businessmen, many workers might suffer as they may lose their jobs.) —VAL, GMA Integrated News
GMA Network
8 hours ago
- GMA Network
Palace to Roque: Why blame Marcos on being forced to leave PH?
Malacañang on Wednesday slammed former presidential spokesman Harry Roque for blaming the Marcos administration for his decision to leave the country amid the cases he is currently facing. Palace Press Officer Undersecretary Atty. Claire Castro took a swipe at Roque, saying that President Ferdinand ''Bongbong'' Marcos Jr. was not with the former Palace official when he got involved in supposed "illegal activities." ''Unang-una po, mukhang isinisisi pa po niya ang naging kalagayan niya at ang kinahinatnan niya kay Pangulo at sa administrasyon... Hindi naman po niya yata kasama ang Pangulo nang siya ay nakipag-deal sa Whirlwind at sa Lucky South 99,'' Castro said. (First of all, it seems like he still blames his situation and the outcome on the President and the administration... He apparently wasn't with the President when he made deals with Whirlwind and Lucky South 99.) GMA News Online has reached out to Roque but he has yet to reply as of posting time. In May, warrants of arrest were issued against Roque, Cassandra Ong and 48 others for qualified human trafficking in relation to the alleged scam hub run by Lucky South 99. Roque, however, claimed that he was being politically persecuted by the Marcos administration after the warrant was issued against him. "I am a victim of political persecution by the Marcos government because I am an ally of the Dutertes," Roque previously said. Castro, however, maintained that the warrant of arrest against Roque was valid. "Paano niyang isisisi ito sa Pangulo at sa administrasyon? So, sa mga ganitong klaseng obstructionist, sana po ay ihinto nila at maging tunay na Pilipino," Castro said. The former spokesperson has denied the accusations against him and said he is not and never has been a legal counsel of any illegal POGO and was not a counsel of Lucky South 99. Roque has said that he is currently at The Hague seeking asylum. The Department of Justice claimed that this has been rejected, but Roque said that this was just "fake news." —VAL/ GMA Integrated News
GMA Network
8 hours ago
- GMA Network
Palace clarifies: Marcos not against K-12 program
Malacañang on Wednesday clarified that President Ferdinand ''Bongbong'' Marcos Jr. is not against the K-12 program. To recall, Marcos previously said that he is frustrated with the implementation of the Senior High School Curriculum, noting that the system has " "no advantage." ''Gusto po nating liwanagin ito. Hindi po niya sinasabi na tutol siya sa K-12. Ang sinabi lang po niya ay hindi naging epektibo agad dahil hindi nai-prepare ang mga ahensiya para dito,'' Palace Press Officer Undersecretary Atty. Claire Castro said in a briefing. (We want to clarify this. He's not saying he's against K-12. He's just saying it wasn't effective right away because the agencies weren't prepared for it.) Castro said that under Education Secretary Sonny Angara, the system is being improved. ''At ngayon po sa pamamagitan din po ni Secretary Angara, ini-improve po ito pero ayon po sa ating Pangulo, hangga't nandiyan po ang batas para sa K-12 ito po ay susuportahan at palalawigin at pag-iibayuhin nang maayos para sa ating mga estudyante,'' she said. (And now, through Secretary Angara, it is being improved, but according to our President, as long as the law for K-12 exists, it will be supported, expanded, and improved properly for our students.) In August 2024, Marcos directed the rationalization of the SHS curriculum as he wanted to ensure that SHS graduates could acquire high-quality jobs. Angara had acknowledged the lapses in the implementation of the SHS was one of the authors of Republic Act 10533 or the Enhanced Basic Education Act of 2013, which institutionalized the government's K to 12 program. The law restructured the basic education in the country by requiring Filipino students to undergo one year in kindergarten, six years in primary school, four years in junior high school, and two years in senior high school. —VAL, GMA Integrated News
