Marcos: Fuel subsidy on hold while oil prices are down
MANILA, Philippines — Following the tentative ceasefire between Israel and Iran, President Ferdinand Marcos Jr. has announced a pause in the fuel subsidy program intended for public utility vehicle (PUV) drivers.
In a media interview, Marcos said that after meeting with economic managers, the conflict’s impact on the Philippine economy should be manageable.
“We looked at it and analyzed what would happen. We saw that the effect on the economy should be manageable. There is still an effect, of course, should the fuel price increase,” Marcos said in a mix of English and Filipino.
“The price of oil has not gone up. So, we do not need to talk about the subsidy yet. The price of oil has not gone up. It went up for one day, then it came back down,” he added.
Marcos said it was safe to proceed “business as usual.”
The president said that the government is currently guarding against price gouging. With fuel prices still down, there was no reason yet to increase the prices of other goods.
Land Transportation Franchising and Regulatory Board (LTFRB) spokesperson Ariel Inton explained that the price of oil fell to $69 per barrel, but the threshold to trigger the subsidy mechanism was $80 per barrel.
Inton said the government remains prepared in case prices surge again. However, the guidelines for distribution have yet to be finalized.
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