Manila, Philippines — The Philippine government has announced fuel subsidies for the transport and agriculture sectors to cushion the impact of soaring oil prices caused by escalating conflict in the Middle East. Officials confirmed that public utility vehicle (PUV) drivers, operators, farmers, and fisherfolk will receive direct assistance, with free bus rides also being considered.

The Department of Finance (DOF) said the national government is closely monitoring global oil prices and coordinating with agencies to ensure a “measured, responsible, and timely response to evolving global events.” Finance Secretary Frederick Go emphasized that the subsidies are part of broader efforts to stabilize inflation and protect vulnerable sectors.  

The Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) are preparing the necessary documents for subsidy distribution. LTFRB Chairman Vigor Mendoza II confirmed that coordination with Landbank and transport operators is underway to ensure fast rollout once global crude prices hit $80 per barrel.  

The government has earmarked P2.5 billion for fuel subsidies to PUV drivers and operators, while additional support will be extended to farmers and fisherfolk to offset rising production costs. Free bus rides are also being considered to ease commuting expenses for the public.  

Officials noted that inflation rose to 2.4% in February 2026, up from 2.0% in January, reflecting the impact of global oil price volatility. The DOF stressed that subsidies are a short-term measure, while long-term strategies will focus on energy diversification and strengthening local food supply chains.  

Transport groups welcomed the announcement but urged the government to expedite distribution, citing the immediate burden of higher fuel costs on drivers and commuters. Farmers’ associations likewise expressed concern that prolonged instability in the Middle East could further disrupt supply chains and increase food prices.

The subsidies are expected to provide temporary relief, but experts warn that if geopolitical tensions persist, fuel prices could continue to climb, potentially reaching P90 per liter in the Philippines.  

This move underscores the government’s balancing act between protecting consumers and managing fiscal resources, as the country braces for one of the most volatile energy markets in recent years.