Manila: The continued rise of crude oil prices and the possible breach of the USD80 per barrel level in the international market should prompt the implementation of fuel subsidies, Senator Sherwin Gatchalian suggested on Friday.
According to Philippines News Agency, the senator said in a news release that the average price of Dubai crude already reached USD74.04 per barrel on June 16 to 18 due to the ongoing Israel-Iran conflict. He warned that a further spike may need the immediate activation of fuel aid provisions under the 2025 General Appropriations Act.
'These subsidies are crucial as oil prices continue to climb,' Gatchalian stated. About PHP2.5 billion has been allocated under this year's national budget for the Department of Transportation to assist public utility vehicle drivers, taxi operators, tricycle drivers, and full-time drivers of ride-hailing and delivery service sectors. An additional PHP150 million has been set aside for the Department of Agriculture to support farmers and fisherfolk.
Gatchalian emphasized that the government must ensure that the assistance is deployed swiftly to cushion the impact of price shocks on vulnerable sectors.
