DBM says joint circular needed for release of P3-B fuel subsidy

Photo shows PUJs along Agno Extension and Araneta Avenue in Quezon City on Tuesday (July 28, 2020) plying the Quezon Avenue-Sta Mesa route waiting for passengers at the jeepney terminal. (PNA photo by Joey O. Razon) / File

By Ruth Abbey Gita-Carlos | Philippine News Agency

The fuel subsidies for public utility vehicle (PUV) operators and drivers this year will only be released once a joint memorandum circular (JMC) stipulating guidelines for the measure has been submitted, the Department of Budget and Management (DBM) said Thursday.

“For the Fuel Subsidy to be released, DOTr (Department of Transportation) must submit the Joint Memorandum Circular (JMC) for FY 2023, as well as its accompanying MOA, that would set the process for the identification and validation of beneficiaries,” it said in a statement.

The joint memorandum circular will be signed by the DOTr, DBM, and the Department of Energy.

The DBM said it is still waiting for the DOTr to submit the documents needed for the release of fuel subsidies.

“This is because the previous guidelines in FY 2022 refer specifically to the release and implementation of the fuel subsidy as reflected in the FY 2022 GAA (General Appropriations Act). Said documents refer to the amount in FY 2022 which is P2.5 Billion, which is different from what is reflected in FY 2023 GAA, which is P3 billion,” it said.

A total of P3 billion is appropriated in the 2023 national budget in the form of fuel vouchers to qualified PUV taxi, tricycle and full-time ride-hailing and delivery services drivers nationwide.

The amount is P500 million higher than the P2.5 billion in the 2022 national budget’s fuel subsidy program.

This fuel subsidy program aims to cushion the impact of high oil prices on PUV drivers.

The program’s implementation is subject to guidelines issued by the DOTr, DOE, and the DBM. Beneficiaries will be validated and identified by the Land Transportation Franchising and Regulatory Board (LTFRB).

On Aug. 6, the DOTr said about 1,640,000 PUV drivers, including tricycle drivers and delivery riders, will receive fuel assistance.

Around P10,000 each will be distributed to modern public utility jeepney and modern UV Express drivers, while P6,500 each will be given to drivers of other modes of transport.

Tricycle and delivery riders will receive P1,000 and P1,200 assistance, respectively.

Data from the LTFRB show that 280,000 PUV drivers will get the one-time cash grant from the agency, while 930,000 tricycle drivers and 150,000 delivery service riders will receive assistance from the Department of the Interior and Local Government and the Department of Information and Communications Technology.

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