The Philippine government will distribute P3 billion in fuel subsidies to some 300,000 farmers, fisherfolk, and drivers hauling agricultural produce beginning this month, under a package of assistance ordered by President Ferdinand R. Marcos, Jr. to help the agriculture sector cope with the effects of El Niño and persistently high fuel prices.

Taken together, the eligible groups span the food supply chain, from production in the fields and fishing grounds to the trucks that carry harvests to Metro Manila's markets.

Agriculture Undersecretary Arrey Perez said the subsidy will be disbursed by the Department of Agriculture (DA) under the administration's Unified Package for Livelihoods, Industry, Food and Transport (UPLIFT) framework, which was initiated in March to address the impact of the sharp rise in oil prices driven by the Middle East war.

Mr. Perez said the DA is working with Land Bank of the Philippines to further speed up the release and distribution of the fuel subsidy through the bank's network of branches and automated teller machines.

Under the program, farmers and fisherfolk will receive a one-time fuel subsidy of P5,000 for their mechanized farm implements, such as tractors and motorized bancas. Delivery-truck drivers will receive a weekly fuel subsidy of P2,000 to help them sustain frequent delivery trips from farms to markets in Metro Manila and parts of the country.

Toll exemption under discussion

Mr. Perez said the Toll Regulatory Board is also in talks with tollway operators on the possibility of exempting agri-delivery trucks from tolls until Dec. 31.

"Dagdag sa fuel subsidy, mayroon po kaming inaayos na toll holiday or discount para rin sa agri truckers (In addition to fuel subsidy, are also working on toll holiday or discount for agri truckers)," said Mr. Perez.

The DA hopes to reach an agreement with the tollway operators soon so the toll holiday can be implemented within the month, he added.

"Mayroon na pong sulat ang Toll Regulatory Board para sa ating mga tollway operators. Hiningan na sila ng komento. Kasi ang hinihingi po natin ay ituloy na iyan hanggang katapusan ng taong ito. Hanggang Dec. 31. Ito po iyong pinag-uusapan ngayon. Sana mapagbigyan tayo (The Toll Regulatory Board had already sought the comments of the tollway operators. We are asking them to continue this until the end of the year or until Dec. 31. We are now discussing this matter which we hope can be accommodated)," the DA official said.

The operators' response to the board's letter will show whether the holiday can begin within the month, as the DA hopes.

High oil prices drive fresh aid

The new round of fuel assistance under UPLIFT is intended to provide relief to vulnerable sectors after benchmark Brent oil hit $100 per barrel on Sept. 9 — the first time since July — amid renewed United States-Iran tension. The $100 mark underlines how the price pressures that led to UPLIFT's creation in March have persisted.

Farmers and fisherfolk are the first targets of the fresh UPLIFT assistance, as a big chunk of their expenses goes to fuel for their palay harvesters and motorized bancas.

Source: BusinessWorld