The administration of President Ferdinand “Bongbong” Marcos Jr. has vowed to “arrest” the country’s recent acceleration of inflation, which has been heavily influenced by the rise in global oil prices, Department of Finance Benjamin Diokno said on Wednesday, July 6, 2022.

Diokno said during a press conference at Malacaang that the government will do so by addressing constraints in the food, energy, transportation, and logistics sectors.

He stated that the government will continue to provide fuel subsidies to affected populations such as drivers, fishermen, and farmers; import products in short supply; and improve transportation and logistics sectors.

He stated that the fuel subsidy would be funded by a windfall tax on fuel products.

He stated that the government will expedite the release of the second tranche of transportation subsidies to mitigate the effects of the crisis.

“Kasi naka-set naman ang specific tax for petroleum products since tumaas ang presyo ng gasoline in the world market tapos nag-depreciate ng konti ‘yung peso, so the peso value of our imports has increased, so magkakaroon tayo ng additional revenue as a result of that,” Diokno stated.

“Doon natin kukuhanin ‘yung pagtaaas ng presyo ng gasoline ibabalik natin sa taong bayan in the form of targeted subsidy, hindi lahat makakakuha pero ‘yung mga mas apektado sila ang makakakuha,” He continued.

In the midst of a series of oil price increases, Duterte approved the release of funds for the “Pantawid Pasada” program in March.

A total of 377,000 drivers qualified for the P6,500 fuel subsidy.

In June, the country’s inflation rate was 6.1 percent, the highest in nearly four years.