DBM Gives Out Php 5.5B In Fuel Subsidy Funds To PUV And Agri Sectors

DBM Gives Out Php 5.5B In Fuel Subsidy Funds To PUV And Agri Sectors

In an effort to aid those most affected by the rapidly-rising gas prices, the Department of Budget and Management (DBM) has released Php 5.5 billion in a subsidy program covering Public Utility Vehicles and automobiles serving in the agricultural sector. Different policies will be enacted upon these 2 groups, but the goal remains the same: minimize the effect of the fuel price hike onto the relative prices of essential goods and services.

A significant chunk of this budget will be going to PUV drivers and those with franchises. This number totals to approximately 377,000 according to the CNN Philippines report. The funds will be released by the DBM, to which the Department of Transportation (DOTr) will be tasked to overlook fair distribution. Each of the PUV drivers will receive Php 6,500 in support for the ongoing fuel crisis.

This policy includes jeepney, bus, and UV Express drivers. The agency is still deciding if tricycle drivers and captains of other public transport systems will get an equal share or smaller. Drivers of unregistered public vehicles will be strictly excluded from the DBM Fuel Subsidy. The amount will come in 2 batches: Php 2.5B this month and Php 2.5B next month, foreseeing the global shortage to last until tensions in Ukraine simmer down or the UAE brings out more of its emergency reserves. As such, the total amount received should this go according to plan is Php 13,000 which can be redeemed through cash cards at the Landbank of the Philippines.

Photo: REUTERS/Romeo Ranoco


Meanwhile, those in the agricultural or farming sector have been allocated Php 500M in a similar DBM fuel subsidy. This is likely to keep the prices of rice and other important food products from rising exponentially due to increased costs.

Farmers and fisherfolk who own gas-powered machinery whether individually or through their organizations may claim a discount cash card each. These cards entitle the holder to a Php 3,000 discount at any contracted gasoline or oil station in the country. As per usual, the DBM will work with the officiating agricultural bodies to get these in agricultural producers’ hands as quickly as possible. This is definitely a step in the right direction to address the issues created by global events.

We’d like to see some kind of program or policy set for necessary courier services as well, since they’ve been a necessary societal backbone in the time of the pandemic.




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