MANILA – The release of P3 billion for the implementation of a fuel subsidy to the transport sector affected by rising fuel prices has been approved by the Department of Budget and Management (DBM).
According to Budget Secretary Amenah F. Pangandaman, the fuel subsidy aims to offer assistance to around 1.36 million drivers and operators impacted by a series of increases in oil prices.
“Transportation is the lifeblood of our economy. President Bongbong Marcos has instructed us to help and not neglect our workers in the transport sector,” Pangandaman said in a statement on Thursday, Sept. 7.
“Therefore, we will ensure that they will receive the appropriate assistance from the government,” she added.
Upon the request of the Department of Transportation (DOTr), P3 billion in funds has been released in accordance with Republic Act No. 11936, also known as the fiscal year 2023 General Appropriations Act.
The DOTr’s request, dated Aug. 9, 2023, was initially returned by the DBM on Aug. 17, 2023, due to deficiencies and inconsistencies in the supporting documents, including the non-submission of the required guidelines.
Last Sept. 4, the DBM received the resubmitted request from the DOTr, along with the required supporting documents.
These documents included the FSP guidelines dated Aug. 31, 2023, signed by the respective heads of the DOTr, DBM, Department of Energy, Land Transportation Franchising and Regulatory Board (LTFRB), and Landbank of the Philippines (LBP).
The LTFRB, in coordination with the Department of Interior and Local Government (DILG), the Department of Information and Communications Technology (DICT), and the Department of Trade and Industry (DTI), has identified and validated the 1.36 million target beneficiaries of the fuel subsidy.
According to the DBM, these beneficiaries will receive a one-time fuel subsidy, with rates varying based on the applicable mode of transportation.
For Modernized Public Utility Jeepney (MPUJ) and Modernized Utility Vehicle Express (MUVE), the subsidy amount is P10,000.
Traditional Public Utility Jeepney (PUJ), Traditional Utility Vehicle Express (UVE), Public Utility Buses (PUB), Minibuses, Taxis, Shuttle Services Taxis, Transport Network Vehicle Services, Tourist Transport Services, School Transport Services, and Filcabs are eligible for a subsidy of P6,500.
Tricycles receive a subsidy of P1,000, while Delivery Services are entitled to a subsidy of P1,200.
As provided in the draft Memorandum of Agreement (MOA) submitted by the DOTr, the subsidy shall be released to the DOTr-OSEC, which shall in turn, fully transfer the same to the LTFRB, as the implementing agency.
Based on the master list of eligible beneficiaries certified by the LTFRB, DICT, DTI, and the DILG, the LBP shall distribute the subsidies through the identified modes of payment, upon receipt of instructions from the LTFRB on the procedures, mechanics, and the agreed schedule.
The LBP shall provide the DOTr and the LTFRB the required reports of its successful crediting of the predetermined amounts, in accordance with the timelines provided in the MOA, or as needed, for purposes of monitoring. (philstar)
