By Tracy Cabrera
DILIMAN, Quezon City — The government may need to spend as much as ₱2.4 billion each month if it expands the fuel subsidy program to cover all public utility vehicles, according to LTFRB chairman Vigor Mendoza II.
Mendoza said the current implementation of the ₱10 fuel subsidy for jeepney and utility vehicle drivers already costs the government around ₱160 million per month.
“Providing a ₱2.4-billion monthly subsidy is a major undertaking. That funding could support many other measures aside from fare adjustments,” he said.
The statement comes as fuel retailers prepare for another possible round of significant price increases next week.
The Department of Energy has warned that gasoline and diesel prices in Metro Manila could soon breach the ₱100-per-liter level.
DoE director Rino Abad said an “extra-large” adjustment is being considered for July 21, with pump prices potentially rising by more than ₱10 per liter.
Abad also announced that the department would convene a meeting to discuss the possible return of stricter fuel pricing regulations in response to escalating tensions in the Middle East. The participation of oil firms in the meeting has not yet been confirmed.
Meanwhile, Jetti Petroleum president Leo Bellas estimated that diesel prices could rise by ₱9 to ₱10 per liter, while gasoline prices may increase by ₱3.50 to ₱4.50 per liter. He said the projections remain subject to change depending on the remaining trading days.
“Oil prices in the global market surged due to renewed hostilities in the Middle East, which heightened fears of supply disruptions as shipping activity in the Strait of Hormuz dropped sharply,” Bellas said.
For the current week, diesel prices have already increased by ₱2.62 to ₱4.62 per liter, while gasoline prices went up by ₱1 per liter. In Metro Manila, gasoline now sells for up to ₱96.10 per liter, while premium diesel is priced as high as ₱90.77 per liter.IA/XF
