DBM eyes release of fuel subsidy this week or early next

The Department of Budget and Management (DBM) said Wednesday that it is processing release of funds for the fuel subsidies for public transport utility and for the agriculture sectors.

“Minamadali na namin ang pag-release nung pondo. In fact, we expect na within this week [or] at the latest early next week ang pagre-release nito,” DBM officer-in-charge Undersecretary Tina Rose Canda said on state-run PTV’s Laging Handa briefing.

(We are expediting the release of these funds. In fact, we expect that within this week or at the latest early next.)

Under the 2022 budget, P2.5 billion is allocated for the Fuel Subsidy Program of the Department of Transportation.

On the other hand, the Department of Agriculture (DA) has a budget of P500 million to provide assistance through fuel discounts to farmers and fisherfolk who either individually own and operate agricultural and fishery machinery or operate through a farmers organization or cooperative.

However, the release of the funds can only be triggered if the price of Dubai crude oil for three consecutive months averaged or exceeded $80 per barrel.

This means the data for the entire March was still needed to find the three-month average of Dubai crude oil.

To circumvent the “three-month rule,” Canda said the Department of Energy adjusted its computation to include the December crude oil price data in the computation.

“Ang DOE na ang nag-decide na isama sa computation ‘yung December so December, January, February. Kasi kung halimbawa hintayin yung three months dapat [sa] Abril pa ‘yun mare-release,” she said.

(The DOE decided to include the December data in the computation so it’s December, January, February. If we wait for three months, the funds can only be released in April.)

As to the proposed hike in fuel subsidies for both the public transport and agriculture sectors, Canda echoed the National Economic and Development Authority’s (NEDA) statement that it can be funded through excess tax collections this month. 

“Ma-release ang unprogrammed appropriations ‘pag may excess revenues… pagdating ng katapusan ng Marso meron na ‘yun" (Unprogrammed appropriations can be funded through excess revenues… by the end of March there will be excess collections), she said.

On Monday night, NEDA Secretary Karl Chua announced that the fuel subsidy for the public utility vehicles (PUV) sector would be increased to P5 billion from P2.5 billion, to further ease the impact of skyrocketing oil prices aggravated by the Ukraine-Russia war.

The first tranche, the initial P2.5 billion budget, was targeted to be distributed in March with the second tranche targeted for April.

The economic team is also pushing to increase the fuel vouchers for agricultural producers to P1.1 billion from P500 million, for distribution in March and April. —LBG, GMA News