Senator Win Gatchalian is proposing changes to the government’s fuel subsidy mechanism for public utility vehicle (PUV) drivers, seeking a shift from a fixed price threshold to a percentage-based trigger system to ensure quicker relief amid looming oil price hikes.
Under the current Pantawid Pasada program, fuel subsidies are activated when global oil prices reach $80 per barrel. Gatchalian is recommending that subsidies instead be automatically released once fuel prices increase by a certain percentage within a week, allowing the government to respond more swiftly to market volatility.
Global oil prices are projected to climb amid ongoing tensions in the Middle East. Dubai crude last closed at $68.34 per barrel. Gatchalian said relying on a fixed threshold could delay assistance, especially during periods of sharp and sudden price movements.
“Mabilis ang pagtaas ng presyo ng langis pero hindi naman mabilis ang pagtaas ng pamasahe dahil nire-regulate din ito ng LTFRB kaya ang mga naiipit dito ay ang mga PUV drivers,” the senator said, noting that fare adjustments are regulated by the Land Transportation Franchising and Regulatory Board, leaving drivers vulnerable to rising fuel costs.
As chairperson of the Senate Finance Committee, Gatchalian also plans to conduct an oversight review to determine the causes of previous delays in the release of Pantawid Pasada funds.
The proposed reform aims to ensure that fuel subsidies are released in a more timely and responsive manner, providing much-needed protection to drivers facing sudden oil price surges.
