PHL funds fuel relief; no borrowing planned yet

THE Philippine government has sufficient funds to support its economic response to the Middle East war and has no immediate plans to borrow from international lenders, the Presidential Palace said on Thursday.

“As of now, there are no plans yet [to borrow],” Palace Press Officer Clarissa A. Castro told a news briefing, citing Finance Secretary Frederick D. Go.

The conflict, now approaching two weeks, has sharply increased oil prices after Tehran halted shipments through the Strait of Hormuz, a crucial route handling about a fifth of global oil and gas supplies. Fuel prices in the Philippines, a net oil importer, have risen by as much as P38.50 per liter.

To ease the impact, the government is deploying targeted subsidies. The Department of Transportation has allotted P3.5 billion to fund free rides for commuters and cover fuel costs for public utility vehicles.

The Department of Agriculture is exploring additional funding to expand fuel subsidies for farmers and fisherfolk.

Agriculture Undersecretary Drusila Esther E. Bayate said the agency would prioritize fifth-class municipalities and coordinate with the Department of Budget and Management to tap unused funds from last year’s program.

About P150 million is available, while the P10-billion Presidential Assistance for Farmers and Fisherfolk program could be tapped if prices remain high.

The Bureau of Fisheries and Aquatic Resources (BFAR) has earmarked P50 million for fuel subsidies targeting roughly 200,000 fishers with motorized boats.

BFAR Assistant Director Zaldy P. Perez said an additional request for P25 million could raise support per fisher to P5,000.

Fishermen are losing P500 daily due to surging diesel prices.

Surging diesel prices have hit fishermen hard, said Jayson H. Cainglet, executive director of the Samahang Industriya ng Agrikultura.

Diesel prices jumped P24 per liter in one week, with daily losses reaching P500 per fisher, threatening to halt some fishing activities, he told senators.

In the capital region, the Department of Social Welfare and Development will roll out P5,000 fuel subsidies for public utility drivers starting on March 17.

Tricycle operators will receive payments first, followed by jeepney, taxi and transport network vehicle service drivers.

The program will draw on P30 billion from the P60-billion fund for people in crisis situations.

The conflict began on Feb. 28 when the US and Israel launched coordinated airstrikes on Tehran’s military infrastructure, causing thousands of casualties and widespread regional disruption.

About 300 Filipino workers have been repatriated so far, with additional chartered flights planned in the coming days.

President Ferdinand R. Marcos, Jr. said the government is actively exploring alternative oil suppliers while monitoring logistics to prevent shortages.

Analysts warn that continued instability around the Strait of Hormuz could drive prices even higher, worsening inflation, eroding household purchasing power and straining transport, industrial and consumer sectors. — Chloe Mari A. Hufana and Adrian H. Halili