The Land Transportation Franchising and Regulatory Board (LTFRB) is preparing all necessary documents for the distribution of fuel subsidies in anticipation of a continued surge in petroleum prices driven by escalating tensions in the Middle East.
LTFRB Chairman Vigor D. Mendoza II said the agency is coordinating with government partners such as Landbank and engaging transport operators to ensure swift distribution of assistance once global oil prices reach $80 per barrel.
“We are already preparing all the documents and coordinating with the transport sector with the goal of fast and smooth distribution of the fuel subsidy once there is a go signal from the national government,” Mendoza stated.
“The coordination with the transport sector includes checking that all the beneficiaries of their cards are still with them and also in updating the list in order to address all the possible problems this early,” he added.
He said their move is in compliance with the order of Department of Transportation Secretary Giovanni Lopez to prepare in the earliest time in anticipation of the surge of oil prices.
Experts said the air strikes in the Middle East, coupled with the closure of the Strait of Hormuz which is a major route for global oil trade, could disrupt oil trade and would eventually result in higher petroleum products.
This early, there were already projections that there would be an increase of around P9 per liter of diesel and around P4 per liter in the price of gasoline next week.
Once the fuel subsidy is approved for distribution, its amount is expected to absorb the effects of oil price hikes for more than a month.
Lopez earlier said that the national government is expected to set aside around P2.5 billion for fuel subsidy.
“What is more interesting right now is we have a fuel subsidy. I instructed the road sector to start the documentation, the processing of the fuel subsidy so that once the $80 threshold is met, what we would do is basically to give the subsidy,” said Lopez.
President Marcos also said that he would talk with the Congress for the suspension of fuel tax if the price of oil products remain unstable in the next weeks. (Aaron Recuenco)
