DBM: Joint circular needed before fuel subsidy can be released

The Department of Budget and Management (DBM) on Thursday said a joint memorandum circular signed by concerned agencies is needed before it can release the fund for fuel subsidies of public utility vehicle (PUV) drivers and operators.

“For the Fuel Subsidy to be released, DOTr (Department of Transportation) must submit the Joint Memorandum Circular (JMC) for Fiscal Year 2023, as well as its accompanying MOA (memorandum of agreement),” the DBM said in a statement.

The Budget Department said the documents are needed to “set the process for the identification and validation of beneficiaries for 2023.”

Under Special Provision No. 7 of the 2023 General Appropriations Act, signatories of the JMC for the fuel subsidy program are the DOTr, Department of Energy, and DBM, according to the DBM.

“This is because the previous guidelines in FY 2022 refer specifically to the release and implementation of the fuel subsidy as reflected in the FY 2022 GAA,” it said.

“[The] said documents refer to the amount in FY 2022 which is P2.5 billion, which is different from what is reflected in FY 2023 GAA, which is P3 billion. Further, all the titles and the provisions all refer to the FY 2022 GAA,” it added.

The Land Transportation Franchising and Regulatory Board (LTFRB) earlier said it plans to distribute the fuel subsidies for PUV drivers and operators before the end of the month. 

About P3 billion was earmarked for the fuel subsidy in the form of cash cards that could be used by PUV drivers in select gasoline stations.

About P10,000 will be given to each modern jeepney and UV Express unit, and P6,500 will be given to the drivers of traditional jeepneys.

Motorcycle taxis and delivery service riders will be given P1,200 that will be distributed through an e-wallet, while tricycle drivers will receive P1,000 each that will be distributed by the local government unit where they are registered.

GMA News Online has reached out to the DOTr and LTFRB when it plans to sign the required JMC for the release of the fund needed for fuel subsidies, but no response yet has been received as of posting time. — RSJ, GMA Integrated News