DBM: DoTr seeking P7.76B for fuel subsidy, service contracting programs

THE TRANSPORT department needs P7.76-billion additional funding to support its fuel assistance and expanded service contracting programs, the Department of Budget and Management (DBM) told a House panel on Tuesday.
In a presentation before the House Committee on Transportation, Budget Director Dante B. De Chaves detailed the Department of Transportation’s (DoTr) request, which includes P2.760 billion for fuel subsidy and P5 billion for the service contracting program.
The DBM reported that as of April 21, more than P1.18 billion has already been distributed to over 257,000 beneficiaries nationwide under the current fuel subsidy rollout.
Social Welfare Secretary Rexlon T. Gatchalian, in the same hearing, defended its agency’s strict validation process, emphasizing the need for accurate beneficiary lists before releasing government aid.
He noted persistent issues with outdated and duplicate records, which have affected payout efficiency.
“The DSWD (Department of Social Welfare and Development) operates in one simple premise, a clean list. Wherever we do payouts in local government unit, national government agencies, our only request is for a clean list or else we won’t go there,” Mr. Gatchalian said in both English and Filipino.
On digital platforms, he clarified that the agency is not opposed to e-wallets but prioritizes prudence.
“It’s not that we don’t want to use e-wallets because most of our programs. In fact, 4Ps (Pantawid Pamilyang Pilipino Program) are already in Gcash, but we have to exercise prudence,” he added.
Mr. Gatchalian warned that immediate digital payouts without verification could lead to massive losses.
“We’re getting a junk list… if off the bat, we give the list and credited it to Gcash, the government would have lost P2,754,090,000 pesos,” he said.
Party-list Rep. Ramon Rodrigo L. Gutierrez seconded this and stressed the need for standardized and verified databases across transport agencies. He further emphasized the importance of integrating data from the Philippine Statistics Authority with the National ID system.
The Department of Information and Communications Technology (DICT), meanwhile, proposed a digital “push-button” subsidy system.
DICT Secretary Henry R. Aguda presented a roadmap to fully digitalized subsidy distribution through e-Gov portal and PhilSys National ID system.
The plan includes e-wallet integration via GCash and Maya, and real time data “scrubbing” to reduce duplication and delays.
In the same hearing, Maritime Industry Authority Administrator Sonia B. Malaluan, said the fuel subsidy program will cover passenger and cargo vessel operators, tugboats, and nearly 2.07 million marginalized fisherfolk nationwide.
The agency is coordinating with DoTr and DSWD to implement a one-time cash grant for eligible beneficiaries, while conducting database “scrubbing” to avoid duplication and errors.
The Civil Aviation Authority of the Philippines (CAAP) on the other hand, has implemented temporary fee reductions to cushion the aviation sector from high fuel prices.
Director General Raul L. Del Rosario said passenger terminal fees for CAAP-operated airports have been reduced by an average of P200 per passenger.
He added that starting April 1, CAAP also implemented a three-month reduction on aircraft landing and parking fees for commercial airlines.
“The option to extend this is open depending on the requirements, and we can consider further reduction on the other charges,” Mr. Del Rosario said.
Meanwhile, transport groups such as Manibela and PISTON, reiterate their call to restudy and junk the Oil Deregulation Law.
“For nearly 28 years, this law has prevailed, and for just as long it has burdened not only the transport sector but also the Filipino people. That is why we have long been calling for its to be junk,” Mody Floranda, national president of PISTON said in Filipino. — Pexcel John Bacon

