PUV drivers set to get fuel subsidy as oil prices surge
President Marcos has ordered the distribution of fuel subsidies to public utility vehicle (PUV) drivers and operators in response to the anticipated jump in the pump prices of gasoline and other oil products, the Department of Transportation (DOTr) said on Monday.
Filipino motorists face sharp increases of as much as P5.20 a liter in the price of petroleum products this week as the conflict in the Middle East has worsened with the United States’ involvement. (See related story on Page A2.)
DOTr spokesperson Mon Ilagan, in an interview with radio dzMM, said they were working with the Land Transportation, Franchising and Regulatory Board in ironing out the guidelines of the fuel subsidy program, which would be implemented after the fuel price hikes take effect.
The fuel subsidy will not only provide relief for the drivers but also arrest potential fare increases, he said.
The recipients of the subsidy will include drivers of traditional jeepneys, UV Express units, buses and tricycles, along with delivery and ride-hailing drivers.
A total of P2.5 billion has been allocated for this program.
The DOTr is also working with the Department of Energy and Department of the Interior and Local Government in rolling out the program.
Staggered increase
Local oil players have also agreed to the Department of Energy’s (DOE) proposal for a staggered implementation of the price increases, but consumers will still feel the pinch as the adjustments will be distributed in only two installments within the same week.
DOE officer in charge Sharon Garin said nearly all major fuel retailers were amenable to the request during their meeting on Monday, among them Petron Corp., Shell Pilipinas, Caltex, Jetti Petroleum, PetroGazz, Insular, Phoenix, PTT Philippines, Seaoil, Total, Unioil, Filpride and Cleanfuel.
Garin said the move was meant to soften the impact of the impending price hike on consumers as the hefty adjustments would be distributed “over a more manageable period.”
For instance, Shell Pilipinas and Seaoil will implement in two tranches this week their upward price adjustments of P3.50 a liter for gas, P5.20 for diesel, and P4.80 for kerosene.
Discounts
“Our dialogue with industry players today reflects our shared commitment to balance economic realities with the need to shield our people from sudden price shocks, and we are pleased to report that they have responded positively to our request,” Garin said in a statement.
She likewise urged the companies to increase the number of retail stations offering fuel discounts to the transportation sector.
“We also urge them to exercise prudence in passing on cost changes to consumers. Much of the recent price volatility is being driven not by actual supply disruptions, but by speculative trading due to geopolitical uncertainties,” added Energy Undersecretary Alessandro Sale.
Another meeting with the oil firms has been set for June 25.
The widening tension in the Middle East has been influencing the rise in oil prices, but these are expected to surge further following the US attacks on Iran’s nuclear facilities over the weekend.
Data from the DOE showed that as of Monday, the average pump price of gasoline stood at P55.90 a liter, diesel at P53.40, and kerosene at P70.22.
