DBM releases P3B fuel subsidy for transport workers

The Department of Budget and Management (DBM) on Friday approved the release of P3 billion worth of funds to implement the Fuel Subsidy Program for transportation workers affected by rising pump prices.

In a statement, the DBM said Budget Secretary Amenah Pangandaman approved the release of funding requirement for fuel subsidies for approximately 1.36 million drivers and operators affected by the series of fuel price hikes.

The fuel subsidy comes after oil companies implemented its eighth straight week of upward adjustments for gasoline, and the ninth for both diesel and kerosene this week.

The Budget Department said the release of funds was made upon the request of the Department of Transportation (DOTr), and in accordance with Special Provision (SP) No. 7 of the DOTr-OSEC agency-specific budget authorized under the 2023 General Appropriations Act (GAA).

“It may be noted that the DOTr’s request dated 9 August 2023 was returned by the DBM on 17 August 2023, due to the noted deficiencies and inconsistencies in the accompanying supporting documents, including the non-submission of the guidelines to be issued by the DOTr, the Department of Energy (DOE), and the DBM, which is required under SP No. 7 in the FY 2023 DOTr-Office of the Secretary (DOTr-OSEC) Budget,” the agency said.

“Hence, on 4 September 2023 (Monday), the DBM received the hard copy of the officially-resubmitted request from the DOTr accompanied by the required supporting documents, including a copy of the FSP guidelines dated 31 August 2023, duly-signed by the respective Heads of the DOTr, DBM, DOE, Land Transportation Franchising and Regulatory Board (LTFRB), and Landbank of the Philippines (LBP),” it added.

The DBM said the 1.36 million target beneficiaries, identified and validated by the LTFRB, in coordination with the Department of Interior and Local Government (DILG), Department of Information and Communications Technology (DICT), and the Department of Trade and Industry (DTI), will be given a one-time fuel subsidy, with varying rates depending on the mode of transportation:

• Modernized Public Utility Jeepney (MPUJ): P10,000
• Modernized Utility Vehicle Express (MUVE): P10,000
• Traditional PUJ: P6,500
• Traditional UVE: P6,500
• Public Utility Buses (PUB): P6,500
• Minibuses: P6,500
• Taxis: P6,500
• Shuttle Services Taxis: P6,500
• Transport Network Vehicle Services: P6,500
• Tourist Transport Services: P6,500
• School Transport Services: P6,500
• Filcabs: P6,500
• Tricycles: P1,000
• Delivery Services: 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, the DBM said.

Based on the master list of eligible beneficiaries certified by the LTFRB, DICT, DTI, and the DILG, the Budget Department said the Landbank 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 Landbank, likewise, 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.

The latest data available from the Department of Energy indicate year-to-date net increases of P14.80 per liter gasoline, P9.50 per liter for diesel, and P6.64 per liter for kerosene as of August 29, 2023. —VAL, GMA Integrated News