P20-B emergency fund set to secure fuel supply
President Marcos has directed the release of billions in additional funds in response to the deepening global oil crisis caused by the Middle East conflict, a day after he signed an executive order declaring a national energy emergency.
The P20-billion emergency fund, sourced from the Malampaya Gas Fund under the Special Account in the General Fund, is aimed at securing fuel supply and stabilizing its availability, the Department of Budget and Management (DBM) said on Wednesday. It will be released under the Department of Energy.
“This is about protecting the daily life of every Filipino—from the jeepney driver and delivery rider, to our farmers, front-liners, and ordinary families. Whenever there is a problem with fuel, the entire economy is affected. This can’t wait,” Budget Secretary Rolando Toledo said in a press statement.
“Under the President’s directive, we are moving with urgency to ensure that fuel remains available, prices are moderated, and essential services continue uninterrupted. This is government acting ahead of the crisis—not reacting after the damage is done,” he added.
Militant groups, however, said the subsidy, meant to help shield Filipinos from the impact of the oil crisis, was insufficient without an across-the-board wage hike.
The P20-billion intervention will be used for the procurement of fuel products, including diesel, gasoline, and liquefied petroleum gas, and to ensure uninterrupted operations across transport, logistics, agriculture, emergency response, and other critical sectors, the DBM said.
This amount is on top of the P21.47 billion that the President has authorized for release on March 20 to fund fuel subsidies for drivers and sustain infrastructure projects.
Glaring exclusion
Mr. Marcos on Tuesday signed Executive Order No. 110 or the national emergency declaration that also provides the framework for the Unified Package for Livelihoods, Industry, Food, and Transport (Uplift).
The emergency response program aims to ensure stable domestic energy supply, uninterrupted essential services, and continued economic activity and protecting the welfare of the citizens, especially in vulnerable sectors.
The Unyon ng mga Manggagawa sa Agrikultura (UMA), part of the All Workers’ Unity coalition, however, denounced Uplift for excluding the Department of Labor and Employment (Dole).
It said the exclusion of the Dole was glaring, as the emergency measures included no provisions for wage increases or a national minimum wage near the P1,200-per-day family living wage, highlighting the administration’s disregard for the sector.
“Even in Metro Manila, people struggle to make ends meet with only P695 per day while oil prices reach P130 per liter, so imagine the situation in rural areas where wages are lower and fuel prices even higher,” said UMA national chair Ariel “Ka Ayik” Casilao in Filipino.
“Marcos Jr. has no solution because as a nepo-baby of a fascist dictator, his life is not in line with reality,” said Casilao.
‘All talk’
Women’s rights group Gabriela said the government’s response measures were insufficient and called for the immediate removal of value-added tax (VAT) and excise on petroleum products, which could reduce diesel by P19.10 per liter and gasoline by P19.58 per liter.
The group also urged higher wages to strengthen the purchasing power of workers and low-income households.
“All talks, no action! The people’s call is clear: VAT and excise on oil, remove! Wages and income, increase!” said Clarice Palce, Gabriela secretary general, in Filipino.
In Negros Occidental, government and business leaders said they support the President’s emergency declaration.
House Deputy Speaker and Bacolod City Rep. Alfredo Abelardo Benitez described the measure as a “timely and much-needed” intervention to prevent fuel supply disruptions and stabilize the economy.
“If there is anything we should have learned from the COVID-19 pandemic, it is that the government must be swift, decisive and flexible in its response mechanisms.,” Benitez said.
Juliana Carbon, president of Metro Bacolod Chamber of Commerce and Industry, welcomed the declaration as timely considering that the energy supply is about to reach critical levels if no remedial measures are undertaken, noting how it will have a domino effect on all industries.
“The stability of energy supply is extremely necessary to prevent interruption in essential services. The transport sector is the most affected,” she said.
Manuel Lamata, president of the United Sugar Producers Federation, said they are hopeful that the declaration will be able to address the cost burden the crisis has imposed on the sugarcane industry. —WITH REPORTS FROM ANDREA GREGORIO AND CARLA P. GOMEZ
