Yesterday afternoon, the Department of Energy announced on its Facebook page that the fuel subsidy provided to drivers and operators of jeepneys and UV Express vans is being raised to P12/liter. This P2/liter subsidy increase will be applied later this month, August 15.
This fuel subsidy was introduced in April towards the start of the fuel crisis, and initially provided a P10/liter discount with a 150-liter cap per individual driver. Potential savings for drivers maximizing this subsidy amounted to P1,500 every week. No indication was made on a potential increase to the 150 liters per driver weekly cap.
Read: DOE announcement of increased fuel subsidy for PUV drivers
With the new P12/liter subsidy capped at 150 liters for each driver, potential weekly savings now amount to P1,800 per week. The DOE claims that almost 93,000 drivers have benefited from the program since its launch.
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The P2/liter increase is lower than the Land Transportation Franchising and Regulatory Board’s recommended increase of P10/liter, effectively doubling the fuel subsidy. According to the DOE, the government has disbursed P403,354,438.35 in subsidies since the program was introduced.
The fuel subsidy program was originally planned to run until July 2026, but the program has since been extended due to the war in the Middle East showing no signs of stopping. It will continue to be subject to a monthly review to evaluate its continued necessity.
