DBM releases P3-B fuel subsidies, funding for discounts
Photo by Joanna Rose Aglibot
MANILA, Philippines — The Department of Budget and Management (DBM) on Thursday released a total of P3 billion in subsidies to public utility vehicle (PUV) drivers and funding to cover fuel discounts for agricultural producers to ease the burden inflicted by skyrocketing oil prices.
In a statement, the DBM said the P2.5 billion for the Department of Transportation’s fuel subsidy program plus P500 million for the Department of Agriculture’s (DA) fuel discount program would “provide targeted assistance to affected sectors and cushion the impact of the consecutive oil price hikes in the past three months.”
TNVS covered
The money came from the two agencies’ allocation under the P5.02-trillion 2022 national budget.
Under the program, assistance amounting to P6,500 will be directly provided not only to affected jeepney drivers but also to qualified drivers of UV express, minibusses, buses, shuttle services, taxis, tricycles, and other full-time ride-hailing (such as transport network vehicle service or TNVS and motorcycle taxis) and delivery services nationwide.
“The identified 377,443 beneficiaries may claim the subsidy through cash cards from the Land Bank of the Philippines,” the DBM said.
It added that the Land Transportation Franchising and Regulatory Board has coordinated with the Department of the Interior and Local Government and the Department of Information and Communications Technology for the identification of beneficiaries, particularly on the list of qualified tricycle drivers, ride-hailing services, and delivery services.
As to the fuel discounts, the DBM said these would be extended to farmers and fisherfolk who own agricultural or fishery machinery, either individually or through organizations.
“The fuel discount can be claimed through fuel discount cards, which will be issued in partnership with the Development Bank of the Philippines. The fuel discount cards will then be distributed by regional field offices of the DA to eligible beneficiaries. Finally, the recipients can present their fuel discount cards to the contracted oil companies or gas stations and claim a maximum amount of P3,000 fuel discount,” the DBM said.
President Rodrigo Duterte’s economic team had committed to giving away fuel subsidies in late February, but it took time for implementing agencies to submit the documentary requirements sought by the DBM before releasing the fund.
The government will tap excess revenues for the second tranche of fuel subsidies and discounts that the economic team proposed to be given to vulnerable sectors next month.
On Monday, Socioeconomic Planning Secretary Karl Kendrick Chua told the President that among the mitigating measures proposed by the Economic Development Cluster included doubling to P5 billion the fuel subsidy program for PUVs.
“We will double the subsidy, and the first tranche will be given in March, and the second tranche in April,” said Chua, who heads the state planning agency National Economic and Development Authority (Neda).
The Neda chief added that the economic team wanted to more than double the amount of fuel vouchers for agricultural producers to P1.1 billion, across two tranches to be granted this month and next.
“By that time, we will have additional revenues to fund these subsidies,” he said.
Neda Undersecretary Rosemarie Edillon on Tuesday said they were awaiting tax-collection figures in March, as excess revenues would fund unprogrammed appropriations in the budget. Besides extra amounts exceeding the revenue program, foreign borrowings also fund unprogrammed budget items, such as fuel subsidy and discount coupons.
Also on Tuesday, National Treasurer Rosalia de Leon confirmed that revenue collections would likely exceed the program by the time additional fuel subsidies needed to be disbursed.
“I understand that extra fuel subsidies will be in April. We have the excess revenues by then to finance (it),” she said.
Chua also told the President that the government would continue working with private firms to sustain the promotional discount of P1-4 a liter being offered by oil companies to PUV drivers.
RELATED STORY
LTFRB to distribute fuel subsidy next week
