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GMA Network
6 days ago
- Business
- GMA Network
DOE: Fuel subsidy not needed ‘for now' as crude prices drop
"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. 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
GMA Network
6 days ago
- Automotive
- GMA Network
DOTr: Franchise consolidation not required in receiving fuel subsidy
Public utility vehicle (PUV) operators and drivers who have not yet joined or formed a cooperative through franchise consolidation under the PUV Modernization Program are entitled to receive fuel subsidy from the government to ease their burden amid the spike in fuel prices due to the Iran-Israel conflict in the Middle East, the Department of Transportation (DOTr) said Tuesday. 'Hindi kailangang consolidated na ang mga driver o operator para makatanggap ng fuel subsidy. Gusto ng pamahalaang maging inklusibo ang programa lalo't buong sektor ay mararamdaman ang epekto ng pagtaas ng krudo —consolidated man o hindi,' the DOTr said in a statement. (It is not a prerequisite for a driver or operator to be consolidated to receive fuel subsidy. The government wants to make the program inclusive since the entire sector will bear the brunt of the hike in crude prices —consolidated or not.) Fuel subsidy The DOTr earlier said it is looking to immediately release the fuel subsidy for operators and drivers of public utility vehicles when a sizeable 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. 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. As of June 23, the average price of Dubai crude oil stands at $75.16 per barrel, according to the Department of Energy (DOE). The DOTr said, along with the LTFRB, it is ready to distribute the fuel subsidy to PUV drivers and operators in accordance with the directive of President Ferdinand Marcos Jr. to immediately ease the burden of sectors to be affected by sudden spikes in fuel prices. Under the previous 'Pantawid Pasada' program, operators and drivers of Modern Public Utility Jeepney (MPUJ) and Modern UV Express (MUVE) received P10,500, while traditional PUJs, UV Express, Minibus, Public Utility Bus received P5,000. Those in the Transportation Network Vehicle Service (TNVS), Taxi, Tourist Transport Services, Shuttle Services, School Transport were entitled to a P4,500 fuel subsidy. Delivery services riders and tricycle drivers were granted P2,500 and P1,100 subsidies, respectively. Marcos, last Wednesday, said fuel subsidies would be given as oil prices are expected to rise given the heightened tensions between Israel and Iran. 'Kasalukuyang nakikipag-ugnayan ang DOTr at LTFRB sa iban ahensiya ng pamahalaan gaya ng Department of Energy (DOE), Department of Interior and Local Government (DILG), Department of Information and Communications Technology (DICT), at Landbank of the Philippines (LBP) upang mapabilis ang pamamahagi ng ayuda para sa mga driver at operator,' the Transportation Department said. (The DOTr and LTFRB are currently in coordination with other agencies such as the Department of Energy, Department of Interior and Local Government (DILG), Department of Information and Communications Technology (DICT), at Landbank of the Philippines (LBP) to fast track the disbursement of the fuel subsidy for drivers and operators.) 'Inaasahang ilalabas ang subsidiya sa lalong madaling panahon ayon sa utos ng Pangulo na madaliin ang distribution nito,' it said. (The fuel subsidy will be released as soon as possible pursuant to the President's order to fast track its disbursement.) To ease the burden of motorists, fuel retailers have agreed to stagger the big-time hike in petroleum prices. 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. 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 farm and fisheries sectors at P75 million each once the crude oil price breaches the threshold. — RSJ, GMA Inegrated News
GMA Network
21-06-2025
- Business
- GMA Network
DOTr: Gov't preparing guidelines for fuel subsidy
The government is preparing the guidelines for the distribution of fuel subsidies to sectors that could be negatively impacted by possible disruptions in oil supply due to the escalating tensions between Israel and Iran, Department of Transportation (DOTr) Secretary Vince Dizon said Saturday. Speaking to reporters, Dizon said the government has allocated P2.5 billion for fuel subsidies. 'May tulong na galing sa gobyerno. Nakaauthorize na 'yan, pineprepare na yung guidelines para makuha nila agad-agad. P2.5 billion ang available sa atin ngayon. Malaki-laki ang hawak natin. Matatanggap nila yan,' he said. (There is help from the government. It has already been authorized, and guidelines are already being prepared to release it right away. There is P2.5 billion available for us currently. We have a big amount. They will receive it.) ''Nananawagan ako sa mga operator natin, mga transport group, huwag naman [magprotesta]. May tutulong na parating, inutos ng Pangulo natin na immediately, ilabas ang fuel subsidy,' he added. (I appeal to the operators and transport groups not to stage protests. Help is on the way, as our President directed that the fuel subsidy be released immediately.) On Wednesday, President Ferdinand Marcos Jr. assured the public that fuel subsidies would be in place as oil prices were set to increase due to the Israel-Iran conflict. Oil prices could rise by P2.50 to P4.80 next week, according to the Department of Energy's forecast, as the "Israel-Iran conflict threatens critical global shipping passage." Fuel firms announce official price movements every Monday, to be implemented the following day. — Jiselle Anne Casucian/VBL, GMA Integrated News
GMA Network
18-06-2025
- Business
- GMA Network
Marcos: Fuel subsidies to be provided in expected oil price hike
President Ferdinand ''Bongbong'' Marcos Jr. on Wednesday said that fuel subsidies would be given as oil prices are expected to rise amid the tension between Israel and Iran. In an interview with reporters, Marcos was asked how the Philippine government is bracing for the expected impact of the conflict. ''We are starting already with the assumption that the oil prices will in fact go up and I cannot see how it will not. Because the Strait of Hormuz will then be blocked if it escalates. The oil cannot come out of its sources. So the prices will certainly be affected,'' Marcos said. ''So the subsidies that we have always given, fuel subsidies, that we gave to, if you remember during the pandemic, lalong-lalong na 'yung mga napapasada, 'yung mga may hanap-buhay naman sila, binigyan nating fuel subsidies (We gave fuel subsidies to drivers during the pandemic)," he added. The president also said that the fuel subsidy will also include others who will be "severely affected." "Now we will have to do the same for those who are severely affected, stakeholders, by any instability in the price of oil. Yes, it's a serious problem,'' said Marcos. Under the existing policy, fuel subsidies for public transport drivers and farmers are automatically activated when the price of Dubai crude breaches $80 per barrel. Fuel prices The 2025 General Appropriations Act (GAA) provides an allocation of P2.5 billion through the Department of Transportation for fuel subsidies to drivers of public utility vehicles, taxis, ride-hailing services, and delivery platforms across the country. The President earlier tasked the Department of Energy to strictly monitor the tension in the Middle East as this is expected to affect fuel prices. The conflict between Iran and Israel began last Friday when the latter attacked Iran with air strikes. The Department of Energy-Oil Industry Management Bureau (DOE-OIMB) earlier projected pump price hikes this week, citing gains on positive US-China trade signals, the stall in nuclear negotiations between US and Iran, and the expected oil demand growth in the next two and a half decades. The DOE is already on alert and is implementing proactive and targeted measures to shield the economy and Filipino consumers against the negative effects of the escalating tensions between the two countries. DOE Officer-in-Charge (OIC) Sharon Garin said that the immediate priority is to ensure that the fuel supply remains stable and sufficient and that any local price adjustments are managed in a way that minimizes disruption to the Philippine economy. The agency also called on industry players to 'implement staggered fuel price adjustments, especially in cases of sudden and significant spikes in global oil prices, in order to cushion the impact on local consumers." As of June 16, the price of Dubai crude reached $73 per barrel, according to the DOE. Meanwhile, Marcos also said that there is no need yet for mandatory repatriation despite the ongoing conflict between Iran and Israel. —VAL, GMA Integrated News
GMA Network
17-06-2025
- Business
- GMA Network
DOE appeals: Stagger price hikes in case of sudden spikes amid Israel-Iran tensions
The Department of Energy (DOE) is on alert as global petroleum prices rise amid the escalating tensions between Israel and Iran and is now implementing proactive and targeted measures to shield the economy and Filipino consumers. 'As we face continued volatility in the global oil market, the Department of Energy is taking firm and proactive steps to protect the welfare of our people,' DOE Officer-in-Charge (OIC) Sharon Garin said in a statement on Tuesday. 'Our immediate priority is to ensure that our fuel supply remains stable and sufficient, and that any local price adjustments are managed in a way that minimizes disruption to our economy. Through close coordination with the oil industry and strict monitoring of inventory levels, we are working to maintain energy security while preparing targeted interventions to support the most affected sectors,' Garin added. Thus, the Energy Department appealed to industry players to 'implement staggered fuel price adjustments, especially in cases of sudden and significant spikes in global oil prices, in order to cushion the impact on local consumers.' As of June 16, the price of Dubai crude reached $73 per barrel, according to the DOE. With this, the Energy OIC said the government is prepared to roll out fuel subsidies to sectors directly impacted by fuel price increases, specifically transport and agriculture. Fuel subsidies are aimed to prevent a domino effect that could drive up the cost of basic goods and services. Under existing policy, fuel subsidies for public transport drivers and farmers are automatically activated when the price of Dubai crude breaches $80 per barrel. The 2025 General Appropriations Act (GAA) provides an allocation of P2.5 billion through the Department of Transportation for fuel subsidies to drivers of public utility vehicles, taxis, ride-hailing services, and delivery platforms nationwide. Meanwhile, the Department of Agriculture has an allocation of P585 million to support farmers and fisherfolk in the agricultural sector who may be adversely affected by rising fuel costs. Garin said the DOE will continue to monitor and analyze real-time global energy market data to inform timely, evidence-based policy responses. Oil companies are currently mandated to maintain at least a 30-day inventory of crude oil and a 15-day inventory of finished petroleum products. — BAP, GMA Integrated News
