Malacañang announced on Thursday that the government has initially allocated P400 million for its P12-per-liter fuel discount program aimed at public utility vehicle (PUV) drivers, with the assistance set to continue for as long as transport workers require support.

Palace Press Officer Clarissa A. Castro stated that the Department of Transportation (DoTr) would provide further details on how the P12-per-liter subsidy amount was determined.

"As of now, P400 million has been allocated for fuel discounts, and the DoTr will provide full details on how the P12 fuel subsidy for our drivers was determined," Ms. Castro told a news briefing in Filipino.

The government raised the fuel discount for public utility jeepney and UV Express drivers by P2 to P12 per liter, effective August 15. This figure falls below the P20-per-liter assistance that the Land Transportation Franchising and Regulatory Board had earlier proposed. The Philippines, as a net oil importer, remains particularly exposed to global fuel price shocks, which feed directly into transport operating costs and broader consumer inflation.

Ms. Castro indicated that the program has no fixed end date and will continue based on the needs of transport workers.

"At this time, there is no definite timeframe," she said. "The government will continue providing assistance for as long as our countrymen in the transport sector need support."

Transport group Manibela characterized the expanded fuel discount as "temporary relief," noting that the limited number of participating gasoline stations still compels many PUV drivers to pay the full pump price. The group has been among the transport organizations that have raised operational concerns amid the government's ongoing PUV Modernization Program, which requires operators to consolidate fleets and transition to newer vehicles.

Ms. Castro acknowledged that the government is working to resolve concerns raised by transport operators, including broadening the network of accredited gasoline stations where drivers can access the subsidy.

"The areas that still need to have gasoline stations providing fuel subsidies must be attended to immediately," she emphasized.

The government anticipates that the increase from P10 to P12 per liter will deliver additional relief by enabling drivers to achieve greater fuel savings under the program. According to the Office of Executive Secretary Ralph G. Recto, the extra P2-per-liter discount could raise the maximum weekly savings of eligible drivers to as much as P1,800.

The initial P10-per-liter discount has already benefited more than 93,000 public utility vehicle drivers since the program was launched in April, the office reported on Wednesday.

The increase was approved during a Cabinet meeting at Malacañang on Tuesday, presided over by Mr. Recto and attended by other Cabinet officials, amid concerns surrounding elevated fuel costs tied to the war in the Middle East.

The Department of Energy (DoE) previously cautioned that fuel prices could remain volatile in the coming weeks, notwithstanding recent reductions in domestic pump prices.

Data from the DoE Oil Industry Management Bureau showed that gasoline prices declined by P0.73 per liter for the period of August 4 to 10, while diesel and diesel plus prices fell by P0.60 per liter. Kerosene prices also dropped by P2.09 per liter.

However, the lower fuel prices were partially offset by higher liquefied petroleum gas prices in August, which increased by P3.67 per kilo.

Separately, lawmakers have filed a bill in the House of Representatives proposing P1,000 in monthly assistance for minimum wage families, to be distributed through a digital wallet linked to the Philippine Identification System.

House Bill No. 10648, known as the Pambansang Agapay sa Pamilya at Maliliit na Negosyo (PAMANA) Act, is designed to assist low-income families who are not enrolled in the Pantawid Pamilyang Pilipino Program (4Ps), the government's flagship conditional cash transfer program that serves millions of the poorest households.

"PAMANA recognizes that having a job does not always mean economic security," Party-list Rep. Jude A. Acidre said in a statement. "It provides targeted assistance to working families who are not covered by 4Ps but continue to face serious financial pressure."

Under the proposed measure, self-employed workers earning below the minimum wage would also be eligible for the program.

The bill's proponents stated that beneficiaries could use the subsidy exclusively to purchase goods from micro, small and medium enterprises — including public market stalls, eateries, neighborhood groceries, pharmacies, and other qualified community businesses — in order to prevent misuse.

"When a beneficiary buys from a sari-sari store, a market vendor, or a neighborhood food business, the assistance becomes income for a local entrepreneur and continues circulating within the community," said La Union Rep. Paolo Francisco V. Ortega, one of the bill's authors.

— Erika Mae P. Sinaking and KPBG