Rising Crude Oil Prices Demand Urgent Fuel Subsidies
MANILA – The steady rise in crude oil prices and the looming possibility of Dubai crude reaching $80 per barrel in the global market should trigger immediate fuel subsidies, a senator emphasized on Friday. The senator urged swift government action to protect vulnerable sectors from the impact of soaring fuel costs.
Recent reports reveal that Dubai crude prices have climbed to an average of $74.04 per barrel between June 16 and 18, largely due to the ongoing conflict between Israel and Iran. This upward trend in crude oil prices signals a potential crisis that could affect the economy and everyday Filipinos.
Fuel Subsidies Critical Amid Middle East Conflict
The senator warned that if crude prices exceed the $80 mark, prompt activation of fuel aid programs outlined in the 2025 General Appropriations Act will be necessary. “These subsidies are crucial as oil prices continue to climb,” he noted, emphasizing the importance of a timely response to mitigate hardships.
Currently, the national budget has allocated around PHP 2.5 billion for the Department of Transportation to provide assistance to public utility vehicle drivers, taxi operators, tricycle drivers, and full-time drivers in ride-hailing and delivery services. This funding aims to ease their burden as fuel costs rise.
An additional PHP 150 million has been earmarked for the Department of Agriculture to support farmers and fisherfolk, who are also vulnerable to the ripple effects of increasing fuel prices. The senator stressed that the government must ensure these funds reach beneficiaries quickly to cushion the shock of price hikes on these sectors.
Government Must Act Quickly to Cushion Price Shocks
In light of the Middle East conflict and its impact on crude oil prices, the senator reiterated the urgency of deploying fuel subsidies without delay. He said the government should prioritize the swift release of aid to protect the livelihoods of those most affected.
The ongoing geopolitical tensions in the region continue to threaten global energy supplies, making it vital for the Philippines to prepare responsive measures. The senator’s call highlights the need for vigilance and proactive support to safeguard the economy and vulnerable groups.
For more news and updates on crude oil prices and government aid, visit Filipinokami.com.