MANILA, Philippines — A total of P569 million in fuel subsidy has been distributed by the state-run Land Bank of the Philippines to cushion the impact of oil prices hikes on public utility vehicle (PUV) drivers.
The amount represents nearly 23 percent of the allocation for the fuel subsidy program, LandBank said.
The beneficiaries had reached 87,500 PUV drivers nationwide as of March 17, under the fuel subsidy program of the Department of Transportation (DOTr) and Land Transportation Franchising and Regulatory Board (LTFRB).
The program has a funding of P2.5 billion and is expected to benefit at least 377,000 PUV drivers, including delivery riders.
LandBank president and chief executive officer Cecilia Borromeo said PUV drivers could expect the state-owned bank to support the government in issuing the fuel subsidies.
She said LandBank is working with the DOTr and LTFRB in speeding up the release of the financial assistance.
“LandBank is one with the national government in providing immediate support interventions to PUV drivers to weather the impact of the fuel price surge,” Borromeo said. “We are coordinating with the DOTr and LTFRB to complete the distribution of the fuel subsidy to the beneficiaries.”
Beneficiaries without fuel subsidy cards will be provided one by LandBank when they receive their cash assistance, Borromeo said.
PUV drivers who got their fuel subsidy card can use it to purchase fuel products from participating gas pumps across the country.
Last week, the Department of Budget and Management issued a total of P3 billion to finance the government’s intervention measures in mitigating the impact of oil price increases on affected stakeholders.
Of the amount, P2.5 billion was allotted to the DOTr’s fuel subsidy program and P500 million was downloaded to the Department of Agriculture (DA)’s fuel discount project.
The funds were obtained from the budgets of the agencies under the 2022 General Appropriations Act.
The DA program seeks to extend fuel discounts to farmers and fishermen who own agricultural or fishery machinery, either individually or through organizations. The discount can be claimed through fuel cards to be issued by state-run Development Bank of the Philippines.
Fuel rates had gone up by P13.25 for gasoline, P17.5 for diesel and P11.4 for kerosene as of March 8.
The government expects oil prices to increase as the world market has yet to normalize due to the conflict between Russia and Ukraine.