Senate Urges Swift Subsidy Release Amid Rising Fuel Prices

MANILA, Philippines — In response to the anticipated increase in fuel prices linked to escalating tensions in the Middle East, Senator Grace Poe has called on the Philippine government to expedite the release of subsidies for affected sectors, including drivers, farmers, and fisherfolk. During a statement on June 23, 2025, Poe emphasized the urgency of government intervention, particularly given the projected rise in fuel costs due to the ongoing Israel-Iran conflict.

According to estimates from the Department of Energy and Jetti Petroleum, gasoline prices are expected to surge by ₱3.20 to ₱3.40 per liter, while diesel prices could spike by ₱4.90 to ₱5.10 per liter (Department of Energy, June 2025). These increases are poised to significantly impact transportation and agricultural sectors, which rely heavily on fuel.

Senator Poe, who serves as the chairperson of the Senate Finance Committee, stated, "Price hikes hit hard and fast; government intervention might be just as quick." She highlighted that the national budget for 2025 has allocated ₱2.5 billion specifically for subsidies to support public utility vehicle drivers, taxi operators, ride-hailing services, and delivery platforms.

In addition to transport, the agricultural sector is also set to receive crucial support, with ₱585 million earmarked for the Department of Agriculture to aid farmers and fisherfolk impacted by rising oil prices. Poe urged relevant agencies to hasten the necessary paperwork to ensure timely distribution of these funds.

This call for action comes amidst broader global concerns about fuel supply and pricing dynamics, which have been influenced by geopolitical tensions. As noted by Dr. Maria Lopez, an expert in energy economics at the University of the Philippines, "The situation in the Middle East has far-reaching implications for fuel prices worldwide, and local governments must act promptly to mitigate adverse effects on vulnerable communities."

The potential economic impact of these fuel price hikes is significant. A report from the Philippine Institute for Development Studies (PIDS) indicates that fuel price increases can lead to inflationary pressures, disproportionately affecting low-income households (PIDS, May 2025). Furthermore, the World Bank has stated that energy price volatility can undermine economic stability, particularly in developing countries like the Philippines (World Bank, 2025).

In conclusion, the call for swift government action to release subsidies reflects the urgent need to protect the livelihoods of those most affected by rising fuel costs. As the situation continues to evolve, the Philippine government’s response will be critical in determining the economic resilience of affected sectors and the overall stability of the nation’s economy.