DA OKs P510 million fuel subsidy to farmers

MANILA, Philippines — The Department of Agriculture (DA) has approved the release of over P510 million in fuel subsidy to about 160,000 farmers owning machinery to help them cope with the high fuel costs.

Agriculture Secretary Francisco Tiu Laurel Jr. said he issued a memorandum order that approved the distribution of fuel subsidies to farmers owning or renting machinery used in crop, livestock and poultry productions.

The distribution of the fuel subsidy could start later this month, according to the DA.

“This initiative aims to alleviate the financial burden on farmers amid the rising cost of fuel,” Tiu Laurel said yesterday.

“This is just one of the several assistance projects that the Marcos administration provides to ease the burden of our farmers, the unsung heroes of our economy and the main pillar of our food security goal,” he added.

The government allocated P510.447 million for the fuel subsidy project this year. The implementation project is being undertaken by the DA through its Bureau of Agricultural and Fisheries Engineering and regional field offices.

Under the project, each registered farmer in the Registry System for Basic Sectors of Agriculture with agricultural machinery and equipment will receive a fuel subsidy of P3,000.

The distribution of these subsidies will be facilitated through assistance cards provided by the Development Bank of the Philippines and its financial technology partners, according to the DA.

The release of the fuel subsidy to the target beneficiaries is contingent upon the Department of Energy’s certification that the average monthly price of Dubai crude oil per barrel has reached $80, based on the Mean of Platts Singapore.

The DA noted that Dubai crude oil prices have exceeded $80 per barrel – fluctuating between $78.48 and $86.50 – from June 3 to July 1.

“This development indicates that the distribution of the fuel subsidy could commence later in July,” it said.