MANILA, Philippines - The government is considering the provision of a one-month fuel subsidy to the public transport sector to cushion the impact of rising fuel costs.
Palace Communications Group Secretary Ricky Carandang said recommendations for the subsidy had been discussed at the level of the Department of Energy (DOE) but is yet to be decided on by President Aquino.
Energy Undersecretary Jose Layug Jr. said the department has drafted an executive order last week that was discussed but not finalized by the Inter-agency Energy Contingency Committee.
Under the program, franchise holders registered with the Land Transportation Franchising and Regulatory Board (LTFRB) will be given a fuel discount of P3 per liter for a month, beginning the second week of April.
Legitimate franchise holders will receive fuel cards valued at P1,500 each. The entire program is expected to cost P600 million.
Funding for the program could be sourced from the President’s contingency fund, or a windfall from value added tax (VAT) collections on oil.
Carandang said the government is studying if it can afford the subsidy.
He said the government is also considering the suspension of the imposition of VAT on oil.
The militant group Pagkakaisa ng mga Samahan ng Tsuper at Opereytor (Piston) has announced that it would conduct a “national day of protest” on March 31 over the alleged inaction of the government to control oil prices.