PUV drivers, farmers to get fuel subsidies

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PRESIDENT Ferdinand Marcos Jr. has directed pertinent government agencies to distribute financial aid to drivers and operators of public utility vehicles as well as farmers and fishermen to help cushion the impact of oil price hikes, the Department of Energy (DOE) said Tuesday.

The Palace issued this statement even as the global price of oil dipped to $69 per barrel from the “high 70s” recently.

In a briefing at the Palace, DOE officer-in-charge Sharon Garin said the “industry has calmed down” after prices spiked as a result of the war between Israel and Iran.

A public utility jeepney driver refuels at a gas station along Commonwealth Avenue in Quezon City on June 24, 2025, amid the first day of another round of fuel price hikes. Diesel prices increased by ₱5.00 to ₱5.30 per liter and kerosene by ₱4.50 to ₱4.80 per liter. PHOTOS BY JOHN ORVEN VERDOTE

While the Palace initially said subsidies would be triggered when the price of oil hit $80 a barrel, Garin said the president’s order was to make sure that owners and drivers of public utility vehicles, farmers and fishermen were protected from oil price spikes.

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She added that a budget of P2.5 billion has been set aside for these subsidies.

Meetings between the DOE, Department of Transportation (DOTr), Department of Agriculture (DA), and Land Transportation Franchising and Regulatory Board (LTFRB) are ongoing to make sure the agencies “are ready to distribute the subsidies.”

Garin, however, did not give a specific timeline for when the cash assistance would be released as this would primarily be decided by the DOTr and DA.

“There is no definite amount yet, the only definite thing is that we have P2.5 billion for subsidies for PUVs. But the individual distribution, how much will be received by each recipient, it probably depends on who will receive and how many will receive. Currently, DOE, DA and DOTr are meeting and DOTr is also hard at work determining the number of recipients, who will actually receive [the cash assistance]. But as pronounced by DOTr, they are ready to disburse anytime that the signal is given to them,” the official stated.

The president earlier convened his economic team to assess the impact of the Israel-Iran conflict on the country.

Garin noted that the government is looking at a range of scenarios including a “worst-case situation” where the Strait of Hormuz, where one-fifth of the world’s oil and fuel supply passes through, would be blocked off by Iran.

“If it gets cut off, then that’s not only bad news for the Philippines but the whole world,” she said.

Still, Garin said the war’s impact on the economy would be “minimal” as long as the conflict does not worsen.

Oil firms are required to have 50 days of buffer stock. At the moment, they have reserves good for 28 days on the average.

“Some are more than compliant, more than 28 days; It’s good that we’ve been visiting the oil companies because now, we are helping with their permitting process to ensure that they are compliant... The whole country is in aggregate, all oil companies combined, we have 30 days of buffer stock,” Garin said, calling this “a good number.”

Should pump prices spike again in the coming weeks, Garin said the DOE would again negotiate with oil companies to implement staggered increases so as not to burden consumers.

On Tuesday, Jetti Petroleum President Leo Bellas said fuel prices are expected to slightly go down next week due to the recent developments of the Israel-Iran conflict.

He noted the prices remained elevated during the first day of trading of Mean of Platts (MOPS), Singapore, but said that the announcement of a ceasefire between Israel and Iran could pull prices downwards coming into Friday, June 27, and in turn, lower local fuel prices next week.

Bellas said tensions have come down after Iran retaliated against US involvement by launching missiles at its military base in Qatar, instead of what the market feared — the closure of the Strait of Hormuz.

“With this development and following announcement by US President Trump that Israel and Iran had agreed to a ceasefire, oil prices fell sharply in early Asian trading and could continue depending on the next set of events. Should this trend continue, we could see prices easing downwards,” Bellas said.

Oil companies in the Philippines raised pump prices this week, on a staggered basis, with hikes set for Tuesday, June 24, and Thursday, June 26.

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