FOR A YEAR

DOF proposes P200 monthly 'ayuda' for poor families in light of fuel price hikes

The Department of Finance (DOF) on Tuesday proposed providing a P200 monthly subsidy for poor households for an entire year to ease the impact of fuel price hikes.

During the Talk to the People aired on Wednesday morning, DOF Secretary Carlos Dominguez III presented the proposal to President Rodrigo Duterte as he recommended to retain the excise tax on oil products despite calls for its suspension.

“Second, we provide targeted subsidies of P200 per month per household for 1 year to the bottom 50% of Filipino households. This will amount to P33.1 billion in budgetary requirements,” he said.

Dominguez admitted that the amount might not be enough but he pointed out that this is what the government can afford to provide as of this time.

“Mr. President, we realize this is not enough but this is what we can afford as of this time. And to make sure our finances going forward and especially for the next administration are still going to be healthy, this I believe is what we can afford,” he added.

Dominguez said the funds for the subsidy would be sourced from the higher collection of value-added tax (VAT) due to the higher prices of fuel.

With the $110 per barrel Dubai crude oil price, Dominguez said VAT revenues will increase by P26 billion. At $125 per barrel Dubai crude oil price, VAT revenues will increase by P34.6 billion.

Wage subsidy

Meanwhile, Labor Assistant Secretary Dominique Tutay said the Department of Labor and Employment proposed a P24-billion wage subsidy for around 1 million minimum wage earners in the private sector. The wage subsidy will be distributed from April to June.

“Ito po ay subsidiya para po sa manggagawa na mga minimum wage earners po in the amount of P24 billion to benefit about 1 million workers sa loob po ng tatlong buwan pamula po Abril hanggang Hunyo,” she said.

(This is a subsidy for workers who are minimum wage earners in the amount of P24 billion to benefit about 1 million workers within three months from April to June.)

On Tuesday, oil firms implemented a major price hike on fuel products, marking the 11th straight week of increases. 

Prices per liter of fuel products went up as follows: gasoline by P7.10, diesel by P13.15, and kerosene by P10.50.

In the past 10 weeks, prices of fuel products have been hiked, and have only been on an upward movement so far this year.

The Department of Energy (DOE) has maintained that the ongoing conflict between Russia and Ukraine has hit global prices. The Philippines does not directly import from Russia, but sources its supply from other countries which in turn source their supply from the country.

The DOE on Monday warned that local pump prices per liter of gasoline could hit as high as P86.72 and diesel at P81.10 should global prices continue to increase. 

However, in Boracay, Aklan, diesel already hit P97 per liter on Tuesday. 

Transportation groups said the weekly fuel price hikes have been a big burden, and called for an increase in the minimum fare.

One jeepney driver, for instance, is already considering selling his jeepney to a junk shop to turn it into money, since he expects his earnings to just go to paying for the cost of fuel. —KG, GMA News