Fuel Subsidy Program Act

Senate Offite of the secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 NOV 11 P2:53 SENATE RECEIVED BY: S. No. 1494 Introduced by Senator Raffy T. Tulfo AN ACT ESTABLISHING A COMPREHENSIVE FUEL SUBSIDY PROGRAM TO PROMOTE ECONOMIC RESILIENCE AND PROTECT LIVELIHOODS AMID FUEL PRICE VOLATILITY, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES EXPLANATORY NOTE The persistent rise in fuel prices continues to burden key sectors of the Philippine economy most especially transport workers, fisherfolk, and farmers whose livelihoods depend heavily on fuel consumption. Every increase at the pump translates not only to higher operating costs but also to reduced earnings and, ultimately, diminishing access to basic goods for Filipinos. While temporary fuel subsidies have been extended in times of crisis, these have remained ad hoc and reactive. The absence of a permanent and well-structured mechanism leaves vulnerable groups at the mercy of volatile global oil markets. A sustained program would not only cushion the impact of price shocks but also ensure continuity of livelihood for sectors that drive production, mobility, and food security. Institutionalizing a Fuel Subsidy Program would establish a predictable, transparent, and equitable system for the distribution of financial aid to affected industries. By embedding this policy within our national framework, we move beyond stop-gap measures toward a more stable and inclusive approach to economic resilience. The proposed measure envisions an integrated, data-driven subsidy system administered by relevant agencies such as the Department of Energy (DOE), the

Department of Transportation (DOTr), the Department of Agriculture (DA), and the Department of Social Welfare and Development (DSWD). It shall ensure that the aid directly reaches qualified beneficiaries through digital platforms or verified financial channels, minimizing leakages and bureaucratic delays. This bill, therefore, seeks to institutionalize fuel subsidies for critical sectors, recognizing their indispensable role in national development and their right to fair support in times of economic volatility. It is hoped that through this measure, we can protect livelihoods, stabilize essential services, and promote social justice for those who keep our economy moving. In view of the foregoing, the passage of this bill is earnestly sought. RAFFY T. TULFO

Sentate Office of the Eccretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 NOV 11 P2:53 SENATE RECEIVED BY: S. No. 1494 Introduced by Senator Raffy T. Tulfo AN ACT ESTABLISHING A COMPREHENSIVE FUEL SUBSIDY PROGRAM TO PROMOTE ECONOMIC RESILIENCE AND PROTECT LIVELIHOODS AMID FUEL PRICE VOLATILITY, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines, in Congress assembled:

Section 1. Short Title. — This Act shall be known as the " Fuel Subsidy Program

2 Act."

Sec 2. Declaration of Policy. - It is hereby declared the policy of the State to

protect and promote the welfare of sectors whose livelihoods are directly affected by fuel price fluctuations. The State recognizes the essential role of transport workers, farmers, and fisherfolk in maintaining food security and economic productivity. To this 7 end, the government shall institutionalize a sustainable and equitable fuel subsidy program to mitigate the adverse effects of fuel price volatility on vulnerable sectors.

Sec. 3. Establishment of the Fuel Subsidy Program. - There is hereby

established a Fuel Subsidy Program, to be implemented as a regular and continuing government initiative to provide targeted financial assistance to qualified beneficiaries adversely affected by abnormal increases in fuel prices. The Program shall provide cash assistance of not less than Seven Thousand Pesos (P7,000.00) per month to each eligible beneficiary under this Act. The subsidy shall be directly deposited into the bank accounts of the beneficiaries to ensure efficiency, accountability, and transparency in distribution.

Provided, That the amount of the monthly subsidy shall be subject to annual 2 review and adjustment by the Department of Energy (DOE) and the Department of Budget and Management (DBM), in consultation with the National Economic and Development Authority (NEDA), to account for inflation, prevailing fuel prices, and fiscal capacity. The Fuel Subsidy Program shall be integrated into the annual General 7 Appropriations Act (GAA) to ensure its sustainability and continuity.

Sec. 4. Beneficiaries. — The Fuel Subsidy Program shall primarily cover low-

9 income individuals and sectors whose livelihoods are directly affected by fluctuations in fuel prices, as determined by the implementing agencies under this Act. The following shall be considered eligible beneficiaries: a. Public Transport Operators and Drivers - low-income operators and drivers of public utility vehicles (PUVs) such as jeepneys, buses, taxis, tricycles, and transport network vehicle services (TNVS), duly registered with the Land Transportation Franchising and Regulatory Board (LTFRB) or with their respective local government units (LGUs): Provided, That registration under the LTFRB's existing databases, or in coordination with the Department of Transportation (DOTr), shall be a requirement for eligibility under this Act; b. Fisherfolk - shall refer to low-income owners and operators of motorized fishing vessels of three (3) gross tons or less, whose primary source of livelihood is fishing within municipal waters and who are duly registered with the Bureau of Fisheries and Aquatic Resources (BFAR): Provided, That registration under the National Program for Municipal Fisherfolk Registration (FishR) shall constitute a precondition for eligibility to receive benefits under this Act: Provided, further, That their corresponding fishing vessels shall likewise be duly registered under the National Program for Municipal Fishing Vessels and Gears Registration (BoatR) of the BFAR: Provided, finally, That fisherfolk who are not yet registered under the Fish and/or BoatR may be provisionally included as beneficiaries under this Act, subject to the condition that they shall

complete their registration within such period and in such manner as may be prescribed under the Implementing Rules and Regulations (IRR). c. Farmers and Agricultural Producers - low-income farmers, farmworkers, and agricultural producers who utilize fuel-powered machinery or equipment for land preparation, irrigation, post-harvest processing, or the transport of agricultural products, as validated by the Department of Agriculture (DA): Provided, That registration in the Registry System for Basic Sectors in Agriculture (RSBSA) shall be a precondition for the receipt of benefits under this Act: Provided, finally, That farmers who are not yet registered in the RSBSA may still be served under this Act, provided they enroll in the said registry. d. Other Low-Income Sectors - other similarly situated groups as may be identified by the Department of Energy (DOE) and the Department of Social Welfare and Development (DSWD), in coordination with the National Economic and Development Authority (NEDA), who are demonstrably affected by fuel price increases and meet the eligibility criteria to be prescribed in the implementing rules and regulations (IRR). Provided, That priority shall be given to individuals and households listed in the government's Listahanan Database of the DSWD or other verified registries of low-income earners, to ensure that assistance is extended to those most in need.

SEC. 5. Non-Diminution of Benefits. - Nothing in this Act shall be construed to

reduce, withdraw, or otherwise diminish any benefit, assistance, or privilege currently enjoyed by transport workers, farmers, fisherfolk, and other eligible beneficiaries under existing laws, ordinances, rules, regulations, or programs. These include, but are not limited to, existing fuel subsidies, livelihood assistance, insurance coverage, training opportunities, access to production resources, and other socio- economic support programs being implemented by national government agencies or local government units. Provided, That no modification or discontinuance of such benefits shall be made without due process and prior consultation with the affected sectors and relevant stakeholders.

SEC. 6. Appropriations. - The amounts as may be necessary for the effective

2 implementation of this Act shall be included in the annual General Appropriations Act 3 (GAA) under the respective budgets of the Department of Energy (DOE), Department 4 of Transportation (DOTr), Department of Agriculture (DA), and Department of Social Welfare and Development (DSWD).

SEC. 7. Implementing Rules and Regulations. — Within ninety (90) days from

7 the effectivity of this Act, the Department of Energy (DOE), in coordination with 8 the DOTr, DA, DSWD, DBM, and NEDA, shall promulgate the necessary rules and regulations to effectively implement the provisions of this Act, including the identification of eligible beneficiaries, distribution mechanisms, monitoring, and reporting systems.

SEC. 8. Separability Clause. — If any provision or part of this Act is

declared unconstitutional or invalid, the remaining provisions not affected thereby shall continue to be in full force and effect.

SEC. 9. Repealing Clause. - All laws, decrees, executive orders, rules, and

regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

SEC. 10. Effectivity Clause. - This Act shall take effect fifteen (15) days after

its complete publication in the Official Gazette or in a newspaper of general circulation. Approved,