DOTr eyes release of fuel subsidy once big-time oil price hike takes effect

The Department of Transportation is looking to immediately release the fuel subsidy for operators and drivers of public utility vehicles when a sizeable oil price hike takes effect in the country.

DOTr spokesperson Mon Ilagan said the fuel According to DOTr spokesperson Mon Ilagan, the fuel subsidy will be released through the Land Transportation Franchising and Regulatory Board (LTFRB), with guidelines now being finalized by the agencies.

The DOTr is also working with the Department of the Interior and Local Government (DILG) for the database of tricycle drivers, and with the Department of Information and Communications Technology (DICT) for delivery riders.

“Sa utos ng ating kalihim, sa oras na mag-take effect kaagad ang big-time price hike… ay kaagad po na ipalalabas ang tulong sa fuel subsidy,” Ilagan said in an interview aired on state-run PTV4.

“Ang sinisiguro natin ay dapat agad agad nating ma-disburse ang pera para sa ating transport sector para kahit papano naman po ay ma-mitigate naman ang epekto ng oil price hike kasi ito pong fuel subsidy program ay dinesenyo po talaga ‘yan para talagang matulungan kaagad ang mga apektadong sektor,” he added.

(Upon orders of our Secretary, as soon as the big-time price hike takes effect, the fuel subsidy should be automatically released. What we are making sure of is that the disbursement of the funds for the transport sector should be immediate to mitigate the effect of the oil price hike, because this fuel subsidy program was really designed to immediately help the affected sectors.)

Fuel retailers have already agreed to implement the scheduled pump price hikes for this week on a staggered basis in a bid to ease the burden of potential major adjustments. They have been given until 6 p.m. on Monday, June 23, to submit their proposed implementation scheme.

President Ferdinand “Bongbong” Marcos Jr. last Wednesday said fuel subsidies would be given as oil prices are expected to rise given the heightened tensions between Israel and Iran.

The Department of Energy-Oil Industry Management Bureau (DOE-OIMB) earlier projected big-time increases of over P3 per liter this week, citing the conflict between Israel and Iran that threatens critical global shipping passage.

The DOE earlier on Monday said officer-in-charge Sharon Garin is set to meet with officials of the DOTr and the Department of Agriculture (DA) on Tuesday, June 24, to discuss the rollout of subsidies for public drivers and farmers.

Firms last week hiked prices per liter of gasoline and diesel by P1.80 each, and kerosene by P1.50. –NB, GMA Integrated News