The Department of Budget and Management (DBM) on Monday confirmed that the government will release another P2.5 billion for the transportation sector and another P600 million for the agriculture sector affected by the rising fuel costs.
Department of Budget and Management Undersecretary Rolando Toledo confirmed the decision during the hearing of the House Committee on Transportation.
“We are confirming the statement of [Transportation] Secretary [Arthur] Tugade, it was [also] announced to the talk of the people. [The government] is giving again another P2.5 billion for the transport sector and another P600 million for the agriculture sector,” he said.
According to Toledo, the second round of the fuel subsidy is strongly supported by the Economic Development Cluster of the Duterte Cabinet.
Toledo said the additional funds would come from the Office of the President.
Economic managers have earlier recommended to President Duterte to increase the budget allotted to the fuel subsidy program to P5 billion from P2.5 billion previously. They also proposed to raise the budget for fuel vouchers for agricultural producers from P500 million to P1.1 billion.
Meanwhile, Undersecretary for Road Transport and Infrastructure Mark Steven Pastor also confirmed that the DOTr has already received the first round of the subsidy for the transportation sector amounting to P2.5 billion.
“We confirmed that we already received the P2.5 billion under 2022 GAA [General Appropriations Act],” he said.
Under the GAA, the Land Transportation Franchising and Regulatory Board (LTFRB) has a specific line item for fuel subsidy for transport sector affected by rising fuel prices amounting to P2.5 billion.
Also, the GAA said that the fuel subsidy shall be used to provide financial assistance or fuel voucher to qualified public utility vehicles, taxi, tricycle and full-time ride-hailing and delivery services drivers nationwide as identified by the LTFRB, when the average Dubai crude oil price based on the Mean of Platts Singapore for three months reaches or exceed $80 per barrel.
For her part, Assistant Secretary Cristina Clasara also confirmed that DBM Officer-in-Charge and Undersecretary Tina Canda has signed on Monday the P7-billion service contracting of public utility vehicles (PUV) program.
The LTFRB has also a specific line item for service contracting of PUV program amounting P7 billion under the 2022 GAA.
Under the program, PUV drivers and operators will receive performance-based incentives weekly based on the number of trips made per week regardless on the number of passengers.
The program aims not only to financially support transport workers, but also to ensure efficient and safe operations of public transportation, and to help health-care workers and Authorized Persons Outside Residence (APORs) amid the pandemic through the “Libreng Sakay” program.