Agriculture Secretary Francisco P. Tiu Laurel Jr. has issued a memorandum order approving the distribution of fuel subsidies to approximately 160,000 farmers who own or rent machinery used in crop, livestock, and poultry production.
The initiative aims to alleviate the financial burden on farmers amid the rising cost of fuel, the DA chief said.
Under the project, each registered farmer in the Registry System for Basic Sectors of Agriculture with agricultural machinery and equipment will receive a fuel subsidy of P3,000.
Distributing the subsidies will be facilitated through assistance cards provided by the Development Bank of the Philippines (DBP) and its financial technology partners.
The government has set aside P510.447 million as fuel subsidy under the 2024 General Appropriations Act to be handled by the Department of Agriculture through the Bureau of Agricultural and Fisheries Engineering and Regional Field Offices.
Sec. Tiu Laurel underscored the significance of the assistance project, emphasizing that it forms part of several initiatives led by President Ferdinand Marcos Jr.’s administration to support farmers, who are integral to ensuring food security and are considered the backbone of the economy.
“This is just one of the several assistance projects that the Marcos administration provides to ease the burden of our farmers, the unsung heroes of our economy and the main pillar of our food security goal,” he said.
The disbursement is contingent on the Department of Energy’s certification that the average monthly price of Dubai crude oil per barrel has reached USD80, based on the Mean of Platts Singapore.
Market data from 3 June to 1 July indicate that Dubai crude oil prices have consistently exceeded USD80 per barrel, fluctuating between USD78.48 and USD86.50.
This development indicates that the distribution of the fuel subsidy could commence later in July. This project underscores the government’s commitment to providing immediate financial relief to farmers grappling with increased production costs due to elevated fuel prices, thereby supporting their ongoing agricultural activities crucial to sustaining the country’s food supply.
