The government-owned Philippine National Oil Company (PNOC) has plans to begin selling discounted fuel to targeted beneficiaries amid fuel prices soaring to unprecedented rates.
In a Senate hearing on Monday, newly seated PNOC president Jesus Cristino Posadas said that the company would issue subsidies to the challenged transport sector, buying fuel from oil industry titans and selling to beneficiaries at participating gas stations for a lower price.
The core recipients would be public utility vehicle (PUV) drivers and operators who have experienced challenging times during the recent oil price hikes. According to Posadas, PNOC’s focus would be buying diesel as it has risen in price more dramatically than gasoline. Diesel is also the preferred fuel for many PUVs as it has been traditionally cheaper than gas.
A subsidy budget amounting to P5 billion has been set aside by the government, while additional funding from either the Land Bank of the Philippines or the Development Bank of the Philippines is also possible.
PNOC: Government could sell cheaper fuel to PUVs
PUV drivers could receive fuel subsidy vouchers as soon as next month.
Autodeal on Mar 16, 2022You are here:HomeLatest StoriesNewsPNOC: Government could sell cheaper fuel to PUVs
The government-owned Philippine National Oil Company (PNOC) has plans to begin selling discounted fuel to targeted beneficiaries amid fuel prices soaring to unprecedented rates.
In a Senate hearing on Monday, newly seated PNOC president Jesus Cristino Posadas said that the company would issue subsidies to the challenged transport sector, buying fuel from oil industry titans and selling to beneficiaries at participating gas stations for a lower price.
The core recipients would be public utility vehicle (PUV) drivers and operators who have experienced challenging times during the recent oil price hikes. According to Posadas, PNOC’s focus would be buying diesel as it has risen in price more dramatically than gasoline. Diesel is also the preferred fuel for many PUVs as it has been traditionally cheaper than gas.
A subsidy budget amounting to P5 billion has been set aside by the government, while additional funding from either the Land Bank of the Philippines or the Development Bank of the Philippines is also possible.
Meanwhile, the Department of Energy (DOE) has urged oil companies to slow down their fuel price hikes to help consumers weather the storm. Staggered price hikes could alleviate the strain from private motorists and PUV operators.
Related: Oil companies urged to stagger fuel prices by the DOE—Suspension of Fuel Excise tax unlikely
However, the Department of Finance (DOF) is playing coy on suspending the fuel excise tax in the Philippines, reasoning that such a suspension would only benefit members of the upper-income brackets. The government agency further stated that a stoppage of the excise tax would not significantly impact the more marginalized citizens of the country.
Fuel subsidies have started at the local government unit (LGU) level, as Quezon City Mayor Joy Belmonte on Wednesday led the distribution of P500 worth of gas vouchers to qualified tricycle drivers. A total of 3,982 drivers will receive the vouchers as part of the first batch.
Whatever the national government decides, it’s clear that something has to give. We may not have seen the worst of the fuel price hikes, so ordinary motorists will have to brace themselves in the meantime.
Related Articles
Mazda Philippines ushers in a new generation with the 2023 CX-60—Price starts at P2,790,000P0.50 diesel rollback expected, gasoline to go up by P1.40—November 8, 2022Gasoline to roll back P0.35, Diesel to go down by P1.10—October 25, 2022Gasoline up by P1.20 and Diesel gets huge price hike of P6.85 this week—October 11, 2022Gasoline rolls back P0.40, diesel by P0.45—October 4, 2022
Latest News
- Hyundai unveils the updated Stargazer MPV / NewsJerome Tresvalles · Oct 14, 2025The 2026 Hyundai Stargazer has landed in the Philippines with a fresh look, improved cabin, and upgraded tech features.
- Nissan teases its future product line at the Japan Mobility Show / NewsShaynah Miranda · Oct 14, 2025Nissan gives a look at what’s coming with the all-new LEAF and other future-ready vehicles at this year’s show.
- JETOUR Auto Philippines joins UAAGI brand portfolio / NewsAutodeal · Oct 13, 2025Renowned automotive powerhouse UAAGI continues to expand its lineup as it officially welcomes JETOUR Auto Philippines to its portfolio.
Popular Articles
- Cheapest cars under P700,000 in the PhilippinesJerome Tresvalles · Sep 02, 2024
- First car or next car, the Ford EcoSport is a tough package to beatJun 18, 2021
- Car Maintenance checklist and guide – here’s everything you need to knowEarl Lee · Jan 12, 2021
- Most fuel efficient family cars in the PhilippinesBryan Aaron Rivera · Nov 27, 2020
- 2021 Geely Okavango — Everything you need to knowJoey Deriquito · Nov 19, 2020
- Family cars in the Philippines with the biggest trunksSep 20, 2023
- Head to head: Toyota Rush vs. Suzuki XL7Joey Deriquito · Oct 28, 2020
- Why oil changes are important for your carEarl Lee · Nov 10, 2020
- 2021 Kia Stonic — What you need to know about itJoey Deriquito · Oct 16, 2020
- Top 7 tips for buying a used car in the PhilippinesJoey Deriquito · Nov 26, 2020
