Gov't prepares P2.5B fuel subsidy for transport workers

The government is preparing guidelines for distributing fuel subsidies to sectors affected by potential disruptions in oil supply due to escalating tensions between Israel and Iran.

DOTr Assistant Secretary Mon Ilagan stated that President Ferdinand Marcos Jr. ordered the immediate distribution of P2.5 billion allocated from the 2025 budget, emphasizing support for transport workers ahead of expected fuel price increases.

The DOTr is working closely with the LTFRB to finalize a list of qualified beneficiaries and ensure drivers and operators receive assistance promptly without fare hikes.

Transport group Manibela wants the subsidy to be at least P8,000 per month, citing the previous amount of P6,500, and hopes it will roll out by July 10.

Fuel retailers have agreed to implement pump price hikes on a staggered basis starting Monday, June 23, to ease the burden of potential major adjustments.

The DOTr is coordinating with several departments including the DOE, DILG, DTI, and Landbank of the Philippines for the subsidy distribution, ensuring immediate release upon orders from President Marcos Jr. as soon as a significant oil price hike takes effect.