Fuel subsidy distribution delayed, awaiting oil price threshold - DOTr head

The more than 1.1 million drivers and operators of public utility vehicles (PUVs), tricycles, and delivery rides will need to wait longer to receive their fuel subsidy despite the recent increase in the prices of gasoline and diesel.

At a Palace briefing on Thursday, Department of Transportation (DOTr) Secretary Vince Dizon said the P2.5-billion fuel subsidy earmarked for 2025 and the remaining P617 million from 2024 remain intact and are ready to be provided to the beneficiaries.

\"The President directed us to prepare these funds so that they can be immediately disbursed and distributed in compliance with the guidelines under our 2025 budget,\" he said.

However, under the General Appropriations Act for this year, the grant of the fuel subsidy is subject to the issuance by the Department of Energy of a certification that the actual average price of Dubai crude oil, as assessed by Mean of Platts Singapore (MOPS), has reached $80 a barrel for one calendar month.

\"But during the past days, the price of oil in the global market peaked only at $78, which is below $80,\" according to Dizon.

MOPS is the basis for pricing of refined petroleum products in Southeast Asia that uses information summarized by Standard and Poor’s Global Commodity Insights, an independent provider of benchmark prices for the energy and commodities markets.

Given the projections of a drop in prices of both diesel and gasoline in the world market following the US-brokered ceasefire between Israel and Iran, Dizon said this will translate to lower fuel prices in local markets in the coming days or weeks.

The government, in turn, may no longer need to tap the allocated budget for fuel subsidy after all.

There are 1,132,407 beneficiaries of the fuel subsidy: 258,712 PUVs, including jeepneys, buses, and UV Express under the DOTr and the Land Transportation Franchising and Regulatory Board; 723,695 tricycles under the Department of the Interior and Local Government, and 150,000 delivery riders under the Department of Information and Communications Technology.

The amount each of the beneficiaries will receive has not yet been finalized, but these will be distributed through the existing Pantawid Pasada fuel subsidy cards, e-wallet accounts, bank transfers, or on a cash basis in identified branches of Land Bank of the Philippines.

President Ferdinand Marcos Jr. on Wednesday announced a pause on the anticipated release of the fuel subsidy after a meeting with his economic managers.

\"We looked at it and analyzed what would happen. We saw that the effect on the economy should be manageable,\" Marcos said.

On the proposed P1 fare increase being pushed by transport groups, Dizon said he will seek guidance from the administration’s economic managers.

\"We will discuss that. We need to strike a balance between the impact of the fare increases on our commuters and fellow citizens. We need to study and carefully weigh that,\" he added.

According to the source: Inquirer.net.