Solon urges ‘speedy’ release of fuel subsidies
IN an effort to mitigate the effect of runaway fuel prices on operators and drivers of public utility vehicles (PUVs), San Jose del Monte City Rep. Florida “Rida” P. Robes has called on the leadership of the Department of Transportation (DOTr), as well as the Land Transportation Franchising and Regulatory Board (LTFRB), to immediately release the earmarked P5 billion worth of subsidies.
In House Resolution (HR) No. 2515, Rep. Robes said the Russian invasion of Ukraine in the past weeks has raised the prices of crude oil to more than US$110 per barrel in the world market which has led to an exponential increase in local prices of petroleum products by P3.60 on gasoline per liter, P5.85/l on diesel, P4.10/l on kerosene and P3 per kilogram for liquefied petroleum gas (LPG) last week.
This, she said, has dramatically increased gas prices to P59-P62 average per liter of diesel, P68-P75 average per liter of gasoline, and P1,053 per 11-kg cylinder of LPG.
As of press time, the price of crude oil has ballooned to more than $120 per barrel prompting another round of price increase this Tuesday (March 15) in the local market. Diesel has gone up to more than P13 per liter while gasoline is higher with an additional P7 per liter increase.
The 2022 General Appropriations Act (GAA) provides for at least P5 billion in automatic fuel subsidy whenever world oil prices breach US$80 per barrel.
She said the huge increase in petroleum products is expected to further burden the already long-suffering public utility drivers who have yet to recover from the ill effects of the COVID-19 pandemic.
“The DOTr and the LTFRB are tasked to issue the fuel subsidies. However, it is taking it some time to release the assistance supposedly due to certain requirements needed from drivers,” Robes said in her resolution.
She said the exponential increase in oil prices has created an extraordinary situation for our drivers that need immediate and decisive action from our government agencies, particularly in this case, the DOTr and LTFRB.
“The DOTr and LTFRB should be mindful of the exigency of the situation and proceed with dispatch the immediate release of the fuel subsidy in order to give reprieve to our public utility drivers who are still reeling from the economic effects of the COVID-19 pandemic,” she said.
