MANILA, Philippines — In response to rising fuel prices, the Department of Budget and Management (DBM) on Friday announced it had fast-tracked the release of P2.49 billion to the fuel subsidy program of the Department of Transportation (DOTr).
An additional P18.65 billion was released to the Department of Public Works and Highways (DPWH) to support infrastructure projects and maintain employment in the sector. A further P324.36 million was disbursed to settle prior obligations for foreign-assisted projects.
“Every peso we release is meant to ease a burden, sustain a livelihood, or keep a service running for our people—especially at a time when global events beyond our control are affecting daily life here at home,” said Budget Secretary Rolando Toledo. He emphasized that fuel subsidies are especially critical as global events push up prices, supporting drivers, commuters, and households.
The DBM clarified that these releases are not new expenditures but are drawn from existing appropriations. The fuel subsidy program is trigger-based, activating when the average global crude oil price exceeds $80 per barrel. The DPWH funds cover payments for completed goods and services as well as ongoing projects.
As part of broader relief measures, the government has begun distributing P5,000 cash assistance to 139,000 tricycle drivers in Metro Manila under the Assistance to Individuals in Crisis Situation (AICS) Program. Public utility vehicle drivers will also receive fuel subsidies from the DOTr starting at the end of March, with amounts based on operating costs.
Industry sources warned that diesel prices, used by buses and fishing boats, could rise to P130 per liter and potentially reach P150 if the conflict in the Middle East disrupts oil facilities further. Gasoline prices may climb by P7 to P7.50 per liter. Current prices have already surged: diesel rose from P47.77–P71.90 in early January to P94–P115, while gasoline climbed from P50–P74.02 to above P90 per liter, according to the Department of Energy.
Energy Secretary Sharon Garin noted that while most Philippine fuel imports come from neighboring Asian countries, the crude oil processed there is largely sourced from the Middle East. Recent regional tensions, including damage to major gas facilities in Qatar and disruptions in the Strait of Hormuz, have prompted suppliers to temporarily halt exports to the Philippines.
“These measures aim to protect Filipino households and maintain essential services amid volatile global oil markets,” Toledo said.