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