Marcos eyes fuel subs amid rising oil prices, global tensions

President Ferdinand 'Bongbong' Marcos Jr. announced on Wednesday that fuel subsidies may be provided to motorists as oil prices are expected to rise due to tensions between Israel and Iran.

Marcos stated during an inspection of a burned-down elementary school in Quezon City that the government is preparing for potential price increases, noting previous instances where fuel subsidies were given to public transport drivers and farmers during the pandemic.

The president indicated similar support would now be extended to stakeholders severely impacted by rising oil prices, emphasizing the importance of stable fuel supplies and managed local price adjustments.

Under current policy, fuel subsidies are automatically activated when Dubai crude exceeds $80 per barrel, with a budget of P2.5 billion allocated for this purpose in the 106th General Appropriations Act (GAA).

The Department of Energy is closely monitoring the situation and has projected potential price hikes due to global tensions, while the peso weakened for a seventh straight session on Wednesday.

Analysts are concerned that an increase in oil prices could stoke inflation and reduce future interest rate cuts by the Bangko Sentral ng Pilipinas (BSP).

The government is also encouraged to accelerate the adoption of electric vehicles (EV) and renewable energy development to reduce reliance on imported oil.

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