President Ferdinand 'Bongbong' Marcos Jr. has ordered the change of certain provisions on fuel subsidies to public utility vehicles (PUVs) and other mode of transport, Energy Secretary Rafael Lotilla said on Tuesday, Oct. 24.
Speaking to reporters at the Malacañang Palace, Lotilla said Marcos particularly ordered the shortening of the trigger period and simplification of requirements for the fuel subsidy release.
"The President gave instructions changing the language of the 2024 GAA provision on fuel subsidies for the transport sector in order to shorten the trigger period from three months to one month and simplify the release requirement," he said.
According to the Energy Secretary, the government presently waits "Dubai price per oil barrel exceeds US$80 for three months to provide fuel subsidies to the transport sector."
In regards to the simplification of requirements, Lotilla said the guideline would "need only to be agreed upon by the DBM [Department of Budget and Management], the Department of Transportation (DOTr), and the Department of Energy (DOE)."
"These can be released upon the finalization of the list of beneficiaries by the Department of Transporation for those which have franchise; and by the Department of Interior and Local Government for tricycle drivers; and by the Department and Trade and Industry for delivery service riders," he added.
Aside from this, the Energy Secretary said they are mulling to make the "mandatory requirement of 20 percent blend of ethanol with gasoline" voluntary.
"The new policy to be implemented is voluntary raising it to 20 percent. This is primarily a price mitigation measure because ethanol, especially those imported, is cheaper than the price of gasoline," he said, adding that this may be approved by the end of the year.
Once implemented, Lotilla said this would "result in a price differential of around one peso and 28 centavos."
