Lawmaker pushes for fuel subsidy hike, law review

Dumper Partylist spearheaded a dialogue with transport leaders at the Acacia Hotel in Davao City on Monday morning, March 30, 2026. Dumper Rep. Claudine Bautista-Lim led the discussion, addressing concerns from the transport sector regarding continuous oil price increases affecting PUV drivers.
Dumper Partylist spearheaded a dialogue with transport leaders at the Acacia Hotel in Davao City on Monday morning, March 30, 2026. Dumper Rep. Claudine Bautista-Lim led the discussion, addressing concerns from the transport sector regarding continuous oil price increases affecting PUV drivers.Ralph Llemit/SunStar Photo
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A PARTY-LIST lawmaker on Monday, March 30, 2026, called for higher fuel subsidies and a review of oil policies, saying current measures fall short as fuel prices continue to rise.

Dumper Party-list Rep. Claudine Diana Bautista-Lim said during a dialogue at Acacia Hotel in Davao City that Congress is drafting amendments to the Oil Deregulation Law to allow government intervention during sharp price increases.

“There’s very little the government can do under the current setup,” Bautista-Lim said, citing limits under the deregulated oil industry.

She said lawmakers are considering expanding the authority of the Department of Energy (DOE) to step in during crises. She also raised the possibility of suspending excise taxes on fuel, while noting the potential impact on government revenues.

Budget gaps, targeting issues

Bautista-Lim flagged gaps in the fuel subsidy program, saying the P2.5-billion allocation handled by the Department of Transportation (DOTr) is not enough to cover all affected drivers.

She also cited inconsistencies in beneficiary lists from the Land Transportation Franchising and Regulatory Board (LTFRB), local government units, and the Department of Social Welfare and Development (DSWD), which have left some drivers without assistance.

Registry, threshold changes 

To address the issue, she proposed creating a centralized and regularly updated registry of transport workers to standardize aid distribution across agencies.

She also urged a review of the trigger mechanism for subsidies. Under current rules, assistance is released only when global oil prices reach $80 per barrel for a sustained period.

“That takes time, and by then, people have already felt the impact,” she said, pushing for a lower threshold to speed up aid delivery.

Policy reforms eyed

Bautista-Lim also backed broader reforms, including possible amendments or repeal of the Oil Deregulation Law, which she said leaves pricing largely in the hands of private companies.

She added that high fuel costs affect not only transport but also the prices of basic goods, warranting a wider subsidy program.

Interim assistance

While awaiting government action, Bautista-Lim said her office has coordinated with private partners to distribute limited fuel assistance.

Around 1,200 jeepney drivers received P2,000 each. In Davao City, 400 taxi drivers, 500 jeepney drivers, and 100 TNVS drivers also received P2,000, while riders got P1,000.

Additional aid reached 3,900 tricycle drivers in Digos City, Davao del Sur, and 1,054 in Malita, Davao Occidental, who received full fuel tanks.

She said the assistance serves only as a stopgap as transport groups continue to push for sustained government support amid volatile fuel prices.

The Oil Deregulation Law (Republic Act No. 8479), enacted in 1998, liberalized the downstream oil industry by removing government control over pricing and supply. While intended to promote competition, critics say it has made local fuel prices more vulnerable to global market fluctuations.

President Ferdinand Marcos Jr. earlier said all options remain open, including amending the law or removing value-added tax on fuel imports, but stressed that the government is focused on easing the immediate impact of rising fuel costs linked to tensions in the Middle East. RGL 

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