Home Economy Fuel subsidy for farmers due out this month

Fuel subsidy for farmers due out this month

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THE Department of Agriculture (DA) said that it will provide a fuel subsidy worth P3,000 to farmers that own or rent machinery for crop, livestock, and poultry production.

“This initiative aims to alleviate the financial burden on farmers amid the rising cost of fuel,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said in a statement on Sunday.

The DA said that about 160,000 beneficiaries will receive the fuel subsidy, which will be disbursed starting late July.

“The disbursement of subsidies to beneficiaries is contingent upon the Department of Energy’s certification that the average monthly price of Dubai crude oil per barrel has reached $80,” it added, citing the benchmark price for fuel traded to east Asia as determined by the Mean of Platts Singapore.

The Department of Energy had said that fuel prices are expected to increase this week with gasoline increasing by P1.50 per liter, by P0.60 for diesel and by P0.80 for kerosene.

Last week, oil companies raised prices by P0.95 per liter for gasoline, P0.65 for diesel, and P0.35 for kerosene.

Farmers listed in the Registry System for Basic Sectors of Agriculture will be eligible for the subsidy.

The DA added that the funds will be distributed via cards provided by the Development Bank of the Philippines  and its financial technology partners.

“This project underscores the government’s commitment to providing immediate financial relief to farmers grappling with increased production costs due to elevated fuel prices, thereby supporting their ongoing agricultural activities crucial to sustaining the country’s food supply,” the DA added.

The DA allocated about P510.447 million for the fuel subsidy program in its 2024 budget. — Adrian H. Halili

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