A congressman has expressed support for the Department of Energy (DOE) proposal to ease the grant of fuel subsidies when there are sharp spikes in oil prices.
The DOE earlier proposed the simplification of requirements as well as the shortening of the trigger period from three months to one month for the release of fuel subsidies.
Rep. Elizaldy Co of Ako-Bicol, chairman of the House of Representatives’ Committee on Appropriations, said he is finding ways to include the DOE proposal in the 2024 national government budget.
The 2024 national budget bill has been passed by the House, and Co is still determining the mechanics on inserting the DOE proposal.
“Congress has no reason not to support the desire of President Ferdinand R. Marcos Jr. on changing the language of the 2024 national budget provision on fuel subsidies for the transport sector. As the father of the nation, the President knows what is good, best for his people. And Congress is always behind the President, who is after the good of the Filipino people,” Co said.
Co added “the President’s pronouncements are state policy. It behooves us in Congress not to abide by them.”
“As representatives of the Filipino people we will do everything what it takes to ease the burden on thek prople especially the most affected sector, in this case, the transport sector,” Co said.
As of this writing, Co said Congress has yet to receive the DOE proposal and it is looking forward to having it submitted to the bigger chamber for review and eventual approval.
Energy Secretary Rafael Lotilla earlier said that the President specifically gave the instructions to rewrite the 2024 GAA provision on fuel subsidies for the transport sector.
“So, with this simplification or shortening of the period, we will be able to release the subsidies in a shorter period of time,” Lotilla said.
Under current regulations, whenever the Dubai price per barrel exceeds $80 for three months, the provision of subsidies to the transport sector drivers is triggered.
On the simplification of the release requirements, as proposed by the Department of Budget and Management (DBM) to Congress, the guidelines will need only to be agreed upon by the DBM, the Department of Transportation (DOTr), and the Department of Energy (DOE), the energy chief explained.
“And these can be released upon the finalization of the list of beneficiaries by the Department of Transportation for those which have franchises; and then by the Department of Interior and Local Government for tricycle drivers; and by the Department of Trade and Industry for delivery service drivers,” Lotilla said.
The Fuel Subsidy Program has a budget of P3 billion for Fiscal Year (FY) 2023, which will cover an estimated 1.36 million qualified public utility vehicles.
Another measure agreed upon during the meeting was the implementation of the voluntary 20% ethanol blend for gasoline which is targeted for approval by the end of this year.
Presently, there is a mandatory requirement of 10% blend of ethanol with gasoline and the new policy to be implemented is voluntary raising it to 20% as part of the government price mitigation measure.