Philippines sets $60m fuel subsidy amid Ukraine war

Philippines sets $60m fuel subsidy amid Ukraine war.

The Philippine government is allocating at least 3 billion pesos (60 million dollars) for fuel subsidies amid rising petrol prices due to the Russia-Ukraine conflict, a spokesman said Wednesday.

President Rodrigo Duterte approved fuel discounts for public transport drivers, farmers and fishermen during a meeting with officials on Tuesday night, his spokesman, Karlo Nograles, said.

“The conflict in Ukraine has economic, trade, and human resource implications for our country and for our people.

“We appeal for an immediate end to the unnecessary loss of life, and call on the states involved to forge an accord that can help prevent a conflagration that could engulf a world still struggling to recover from the COVID-19 pandemic,” Nograles said.

According to Nograles, Duterte also approved other steps to boost food supplies, stabilise prices and provide social protection to the public during the meeting.

“If necessary, the government is prepared to implement price control,” Nograles added.

Economists warned that food prices would increase as imports from Ukraine and Russia were expected to be disrupted by the conflict.

Ukraine was the Philippines’ fourth-largest source of total cereal imports in 2020, and the third-largest for wheat, while Russia supplies about a sixth of Manila’s oil imports, according to economists.

Steven Cua, president of an association of supermarket owners in the Philippines, said it was “wise” to get extra supplies now amid concerns that prices would go up if the war in Ukraine would escalate.

“There is no need to panic buy,” he told television news channel Teleradyo, but added.

“If it’s within your budget, probably it will be wise to buy up for the next two weeks.”