Philippine senators call for immediate fuel subsidies as Middle East crisis worsens

Senators are calling for the immediate provision of fuel subsidies to Public Utility Vehicle (PUV) drivers.

Senator Sherwin Gatchalian said the government should consider tapping the President’s contingency fund for the immediate provision of fuel subsidies.

“Huwag na nating hintayin ‘yung $80 per barrel kasi mataas na ang increase,” Gatchalian said, referring to a spate of oil price increases even before the escalating conflict in the Middle East erupted over the weekend.

Under the Pantawid Pasada program, the granting of the subsidy to the intended beneficiaries is subject to the Department of Energy's issuance of a certification that the actual average price of Dubai crude oil for one calendar month has reached $80 per barrel.

According to news reports, the latest domestic price hikes marked the 10th straight week of increases for diesel and kerosene and the eighth consecutive week for gasoline. Since January, pump prices have climbed by P6.70 per liter for gasoline, P9.40 for diesel, and P7.70 for kerosene.  

Meanwhile, Senator Bam Aquino reiterated his call to intensify the fight against corruption to help offset potential revenue losses from the possible suspension of the excise tax on fuel.

“We know that ang ating jeepney drivers, tricycle drivers, our PUV drivers will be heavily affected kung magtaas ang presyo ng gasolina at ng diesel,” Aquino said during a television interview.

He earlier filed Senate Bill No. 1923 seeking to grant the President authority to suspend the excise tax on petroleum products during national or global economic emergencies.

“That’s also the reason kung bakit tayo nanawagan na mabigyan ng tulong iyong ating transport drivers and transport workers. Nagawa ito during the pandemic noong 2023 and there was some support given to them,” he added, stressing that the subsidy would protect the earnings of more than a million drivers from rising diesel and gasoline prices.

Aquino said transport workers covered by the subsidy include drivers of jeepneys, tricycles, and other public utility vehicles (PUVs), as well as TNVS drivers and motorcycle taxi riders.

Meanwhile, Aquino allayed concerns over potential revenue losses if the excise tax on fuel products is suspended, stressing that anti-corruption measures should be strengthened to augment government funds for services.

“Unahin natin iyong to gaps and close the leaks pagdating sa corruption. Mas malaki iyan di hamak kaysa sa posibleng mawawala na buwis dito sa krudo at dito sa gasolina at diesel. All of these reforms have to be side by side,” the Senator pointed out.

“Habang kino-close natin yung mga leaks na iyan, there will be more to spend on services. So ako, kung makita mo siya yes, baka kulangin ang koleksyon pero iyan naman ay pwedeng pagtakpan kung magiging mas maayos ang pagtrato natin sa pera ng bayan,” he added.

Senate Bill No. 1923 aims to equip the government with a practical tool to shield consumers, support transport operators and small enterprises, and help stabilize local prices when global conditions threaten domestic economic stability.

It also mandates the Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue, to issue the necessary implementing rules and regulations within thirty days from the law’s effectivity.