Government ready to roll out P2.5 billion fuel subsidy

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June 29, 2025 | 12:00am

MANILA, Philippines — The government is ready to give fuel subsidies to over 1.1 million public utility drivers, but only if global crude prices breach the $80 per barrel mark, according to the Department of Transportation.

At a Palace press briefing on Thursday, Transportation Secretary Vince Dizon said the Fuel Subsidy Program, as required under the 2025 General Appropriations Act, is in place and can be implemented if fuel prices shoot up due to the ongoing conflict between Israel and Iran.

A total of P2.5 billion has been allocated for the program in the 2025 national budget, while an additional P617 million remains from the 2024 funds, according to the DOTr.

“If the global oil price exceeds $80 per barrel, we will use it immediately. Last day, the highest oil price hike in the global market was $78 per barrel. It hasn’t reached $80 yet,” Dizon said.

While international oil prices recently climbed to $78 per barrel, Dizon made it clear it will not trigger the release of the subsidies.

The program aims to assist an estimated 1,132,407 beneficiaries across the transport sector, including 258,712 operators and drivers of public utility vehicles (PUVs), 723,695 tricycle drivers and 150,000 ride-hailing app drivers.

Subsidies would be distributed through Pantawid Pasada fuel cards, GCash and Maya e-wallets, bank transfers and cash payouts via Land Bank.

President Marcos maintained that the Fuel Subsidy Program does not need to be activated just yet, but assured concerned sectors that the government stands ready to step in and roll it out if conditions are met.

“Our transport groups are prepared, including DOTr, DILG and DICT, to distribute the fund as soon as it is needed,” Dizon stated adding that government is closely monitoring the movement of global oil prices.