Department of Agriculture Secretary Francisco P. Tiu Laurel Jr. said the agency has secured a P50-million sub-allotment to roll out fuel assistance to thousands of farmers, as surging global oil prices begin to ripple through the domestic economy.
The program will provide P5,000 each to 9,570 farmers who rely on mechanized equipment, based on data from the DA’s Bureau of Agricultural and Fisheries Engineering (BAFE). The assistance aims to cushion the immediate impact of rising fuel costs, which directly affect production and transport expenses in the farm sector. Eligibility, however, remains targeted.
“Farmers eligible for this cash assistance are only those listed in the Registry System for Basic Sectors in Agriculture, as provided in the General Appropriations Act,” Tiu Laurel said, underscoring the government’s focus on verified beneficiaries.
Singapore, reached USD89.02 per barrel as of March 13.
The spike in oil prices has been driven largely by escalating tensions in the Middle East, where supply risks have tightened global energy markets. For oil-importing countries like the Philippines, the impact is immediate and broad-based—raising input costs for agriculture, increasing transport fares, and adding pressure on food inflation.
The release of funds was triggered after global oil prices breached the USD80-per-barrel threshold, a key benchmark under government guidelines. Certification from the Department of Energy showed that the 30-day average price, based on the Mean of Platts While the P50-million allocation offers near-term relief, it covers only a fraction of the sector’s exposure to fuel price volatility.
Mechanized farmers are particularly vulnerable, as diesel accounts for a significant share of operating costs during planting and harvest cycles. A separate fuel subsidiary for fisherfolk is already being disbursed. Tiu Laurel acknowledged the limitations of the financial assistance, saying the government is exploring additional funding support.
“We will continue to look for resources to extend greater assistance to our farmers and fisherfolk—our food producers who are among those most affected by this geopolitical conflict that we are not part of,” he said.
The move highlights a broader policy challenge of balancing targeted subsidies with fiscal constraints as global energy uncertainty persists.
