Proposed Bill for Fuel Subsidy Lodged in Senate

Senate Committee on Energy Vice Chairman Sherwin T. Gatchalian has stated that “an efficient and timely fuel subsidy program for affected sectors” be made in light of the hefty increases for diesel products affecting the public transport sector.

Sen. Gatchalian has said that “if there’s a law on the grant of subsidy to drivers and the operators of public utility vehicles (PUVs), they won’t experience financial difficulty anymore if there are extraordinary price increases.”

He also adds that institutionalizing and improving the current “Pantawid Pasada Program ” is viable to be strengthened through legislation. The Pantawid Pasada Program is currently the government’s subsidy instrument for the PUV sector when diesel prices increase.

Sen. Gatchalian has since lodged Senate Bill No. 348 “which provides for an energy subsidy program”. This bill plans to institutionalize the subsidy scheme of the Pantawid Pasada Program.

This proposed bill states that “the subsidy shall be granted to qualified beneficiaries when the average price of Dubai crude for three consecutive months is equal to or greater than $80 per barrel such as the case now.”

Last week, the Organization of the Petroleum Exporting Countries and their ally producers (OPEC+) decided to lessen production by 2.0 million barrels each day. Global oil prices have then skyrocketed to as much as $97 per barrel.

In the proposed bill of Gatchalian, “the use of digital payment systems in the distribution of the subsidy and imposes penalties against erring government officials for failure to ensure the timely release of the subsidy to all qualified beneficiaries.” was also proposed.

Source: Manila Bulletin