President Ferdinand Marcos Jr. has ordered the release of ₱21.47 billion to fund fuel subsidies and sustain infrastructure projects, as the government moves to cushion the impact of rising global oil prices on the Philippine economy.

The funds, fast-tracked through the Department of Budget and Management (DBM) on March 19–20, come from existing 2025 budget allocations and do not represent new spending. The measure is aimed at providing targeted relief to sectors affected by escalating fuel costs linked to geopolitical tensions in the Middle East.

Support for Transport Sector and Public Services

A portion of the funds will be used to assist public transport operators struggling with higher pump prices. The government has allocated ₱2.49 billion to the Department of Transportation (DOTr) to expand its fuel subsidy program for public utility vehicle drivers and operators.

The program is intended to help stabilize transport fares and ensure the continued availability of public transportation, particularly for commuters who are vulnerable to rising costs.

Infrastructure Spending to Sustain Growth

The bulk of the funding—₱18.65 billion—has been allocated to the Department of Public Works and Highways (DPWH) to maintain the pace of infrastructure projects under the government’s “Build Better More” program.

An additional ₱324 million has been earmarked to settle obligations tied to foreign-assisted infrastructure projects, supporting their timely completion.

Officials said the continued funding of infrastructure projects is critical to preserving jobs, maintaining economic activity, and ensuring road safety amid external economic pressures.

Response to Rising Oil Prices

The funding release comes as global oil prices surge due to ongoing conflict in the Middle East, driving higher fuel costs domestically and adding pressure on inflation and household budgets.

DBM officials said the accelerated disbursement is designed to prevent disruptions in essential services while providing immediate relief to affected sectors.

Targeted Relief Amid External Pressures

The government emphasized that the measure is part of a broader effort to manage the economic impact of global volatility through targeted interventions rather than broad-based spending increases.

With fuel prices expected to remain elevated in the near term, policymakers are focusing on supporting vulnerable groups and sustaining economic momentum through continued infrastructure investment.

‍