NextGen Day

MANILA, Philippines — According to Malacaang, the government has set aside at least PHP3 billion for fuel subsidies under the General Appropriations Act of 2022.

The acting presidential spokesperson, Cabinet Secretary Karlo Nograles, made the comment after oil firms raised prices for the seventh week in a row due to supply shortages in the worldwide market.

In a virtual Palace briefing, Nograles said, “Ang budget law natin (Our budget law) for 2022, which is the General Appropriations Act of 2022, mayroon ang mga nakalaan diyan na para sa mga (it has assigned funding for) fuel subsidy.”

He said a total of PHP2.5 billion is budgeted in the Department of Transportation (DOTr) budget for financial assistance and fuel vouchers to qualifying public utility vehicles, taxis, tricycles, and full-time ride-hailing delivery service drivers who are affected by oil price spikes.

Nograles stated that the initiative will be implemented “when the average Dubai crude oil price based on Mean of Platts Singapore or MOPS for three months reaches or exceeds USD80 per barrel,” as determined by the DOTr, Department of Energy (DOE), and Department of Budget and Management (DBM).

He added that another PHP500 million pesos has been allotted under the Department of Agriculture (DA) to provide fuel discounts to impacted farmers and fishermen.

The fuel discount will be given “provided that the farmer or fisherfolk beneficiary owns and operates agricultural and fishery machinery individually or through a farmer organization, cooperative, or association; and provided further that, in the case of fisherfolk, their fishing vessels are duly registered in the Integrated Boat Registry System or DA-BOATR,” BFAR’s he said.

Farmers or their organizations, he said, must show proof of ownership of farm machinery.

“So may conditions set before ma-trigger itong tinatawag na (So we created circumstances that would trigger this) fuel subsidy,” he explained. “Aside from that, bago tumama po iyan ay patuloy naman po na pinag-uusapan ang iba pang mga mekanismo at tulong na maaari nating ibigay sa mga lubos na maapektuhan (prior to the oil price spikes, we discussed mechanisms and help that we might provide to those

According to Nograles, the administration is also addressing the impact of rising oil prices, notably on the cost of basic foodstuffs.

“Iyong DTI [Department of Trade and Industry] po ay nag-update na po ng kanilang mga suggested retail price para sa mga essential requirements and prime goods,” he said.

Caltex, Cleanfuel, Petro Gazz, PTT Philippines, Seaoil, and Shell each issued separate advisories stating that on Tuesday, diesel prices will rise by PHP1.05 per liter and gasoline prices will rise by PHP1.20 per liter.

Kerosene prices will also be raised by PHP0.65 per liter by Caltex, Seaoil, and Shell.

Local gasoline prices have already risen by PHP6.75 per liter, PHP9.15 per liter for diesel, and PHP8.45 per liter for kerosene since the price modifications last week.

Oil prices are approaching USD100 per barrel, according to S&P Global Platts, due to supply limits caused by geopolitical tensions between Russia and Ukraine, while demand in Asia remains stable as economies recover from the epidemic.

The transit hub for commodities between Russia and the European Union, the Russia-Ukraine border, is a crucial route for oil and gas trade.

The movement of supplies in a global market that is already facing restricted supply is expected to be hampered by geopolitical tension at the border.

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