By Brian Campued
The government would continue to roll out subsidies for the sectors most affected by rising fuel prices amid the exclusion of diesel and gasoline from the excise taxes lifted by President Ferdinand R. Marcos Jr., according to Finance Secretary Frederick Go.
In a statement Tuesday, Sec. Go said additional “targeted and managed” subsidies would be provided for public transport operators and drivers, commuters, farmers, and fisherfolk aimed at delivering immediate relief.
This ensures that support reaches the most vulnerable, the Finance chief added, “while preserving fiscal space to sustain essential public services and respond to an unpredictable global environment.”
On Monday, Marcos announced that P3.36 per kilogram would be trimmed for liquefied petroleum gas (LPG), equivalent to around P36.96 per 11-kg cylinder.
Kerosene prices would also drop by P5.60 per liter.
According to Sec. Go, the suspended excise taxes on LPG and kerosene are focused on the most vulnerable and even middle-income families, as both petroleum products are used by households and small businesses alike in everyday cooking.
Citing data from the 2023 Family Income and Expenditure Survey of the Philippine Statistics Authority, the DOF chief said 48% of total kerosene consumption in the country is attributed to the bottom 30% of households, while 55.7% of LPG users come from the bottom 70%.
This means the benefits extend beyond the poorest households to also support middle-income families. For these families, every peso saved on fuel costs means more resources for food, education, and healthcare,” he emphasized.
On why diesel and gasoline were excluded from the excise tax suspensions, Go said the Development Budget Coordination Committee (DBCC) decided that this “would not likely provide meaningful relief” following oil price hikes in recent weeks.
“Any reduction in retail pump prices would be marginal and largely offset by prevailing market dynamics,” he said.
He stressed that the government is taking a “balanced and fiscally responsible approach” to address the challenges brought about by the ongoing conflict in the Middle East.
Nevertheless, Go assured the public that the DBCC will continue to closely monitor global oil market developments and stands ready to adjust its policy response as needed.
-jpv
