JEEPNEY drivers and operators will get a heftier fuel subsidy next year as the second round of petroleum excise tax increase is likely to be imposed, Budget secretary Benjamin Diokno said.
“It will continue next year based on the additional P2 excise tax,” Diokno said at a press conference in Manila last week.
This means that the P20,000 fuel subsidy of jeepney drivers and operators under the Pantawid Pasada program next year will proceed based on an excise tax rate of P4.50 per liter on diesel.
The Department of Finance earlier said that franchise holders of public utility jeepneys will get a fuel subsidy of P10,000 with the second tranche of increase in fuel excise tax rates temporarily suspended.
The Pantawid Pasada subsidy is P5,000 this year. The program intends to help jeepney drivers and operators tide the higher cost of fuel.
The economic managers, however, decided to overturn their earlier recommendation to suspend the second round of fuel excise tax hikes in 2019.
The decision was influenced by declining prices of crude in world markets and pump price rollbacks on the domestic front.
The TRAIN law imposed a P2.50 per liter excise tax on diesel, from zero, and hiked the levy on gasoline to P7.00 per liter.
The law also provides that the excise tax on diesel will increase by P2.00 to P4.50, and on gasoline to P9.00.
The increase could be temporarily suspended if the average price of Dubai crude reaches or exceeds $80 per barrel on average for three consecutive months before the scheduled increase takes place. (GMA News/PN)
