DBM Releases ₱6.2 Billion Cash Subsidies for Oil Price Hike

The Department of Budget and Management (DBM) has turned over ₱6.2 billion worth of cash subsidies to the Department of Social Welfare and Development (DSWD). They will be in charge of distributing the subsidy to indigent households hit hard by the rise in oil prices. 

The first tranche is directed toward the poorest half of the selected population. 

The DSWD plans on giving out the subsidy to over six million households, with four million out of this number being identified as beneficiaries of the 4Ps program or the Pantawid Pamilyang Pilipino Program. The remaining two million are classified as senior citizens or social pensioners. 

According to the DBM “The beneficiaries shall receive P500 monthly cash subsidies for six months to be distributed in three tranches. This implies they are expected to receive P1,000 for the first tranche, which will be distributed through the cash cards issued by the Land Bank of the Philippines (Landbank) or other approved modes of distribution,”

“The DBM will ensure the timely and prudent release of funds and work closely with all implementing agencies to help ease the burden of the vulnerable population most affected by global crises,” the DBM adds.

The last Duterte administration has rejected pleas to suspend the excise tax on oil during record high prices of oil brought about by the Ukraine – Russia war. 

Instead of suspending tac, the Duterte government opted to allocate cash subsidies for vulnerable sectors. A budget amounting to ₱46.5 billion will be given to the following:

• ₱41.4 billion to the bottom 50% of the population worth ₱500 for six months
• ₱5 billion fuel subsidies to PUV drivers 
• ₱1.1 billion fuel discounts to agricultural producers

Source: Inquirer