DBM releases funds for PUV, agri sectors’ fuel subsidies

The Department of Budget and Management (DBM) on Thursday released P2.5 billion and P500 million in funds for the fuel subsidies for the public transport utility and the agriculture sectors respectively.

DBM officer-in-charge Tina Rose Canda confirmed to GMA News Online the release of funds to the Department of Transportation (DOTr) and the Department of Agriculture (DA).

Under the 2022 budget, P2.5 billion is allocated to the Fuel Subsidy Program of the DOTr, which aims to provide fuel vouchers worth P6,500 to over 377,000 qualified PUV drivers who are operating jeepneys, UV express, taxis, tricycles, and other full-time ride-hailing and delivery services nationwide.

On the other hand, the DA has a budget of P500 million to provide assistance through fuel discounts to farmers and fisherfolk who either individually own and operate agricultural and fishery machinery or operate through a farmers organization or cooperative.

The released funds form part of the first tranche of fuel subsidies to be released by the DBM after the National Economic and Development Authority (NEDA) proposed to hike the funds for the fuel voucher program amid the continued spike in petroleum prices due to the Ukraine-Russia war.

The DBM and NEDA have said that the additional budgetary requirements for the hike in fuel subsidies can be funded by excess tax collection in March.

On Monday night, NEDA Secretary Karl Chua announced that the fuel subsidy for the public utility vehicles (PUV) sector would be increased to P5 billion from P2.5 billion, to further ease the impact of skyrocketing oil prices aggravated by the Ukraine-Russia war.

The first tranche, the initial P2.5 billion budget, was targeted to be distributed in March with the second tranche targeted for April.

The economic team is also pushing to increase the fuel vouchers for agricultural producers to P1.1 billion from P500 million, for distribution in March and April. — BM, GMA News