Filipino drivers to receive fuel subsidies as oil prices rise

March 15, 2022 TheCuriousEconomist Consumer and Business Behaviour, Economic News, Government Policy, Supply and Demand, The Global Economy Comments Off on Filipino drivers to receive fuel subsidies as oil prices rise
Filipino drivers to receive fuel subsidies as oil prices rise

The government of the Philippines has announced a 2.5 billion Peso (US$47m) relief fund to subsidise fuel costs for public utility vehicles, taxis, tricycles, ride-hailing apps and delivery services.

The fuel subsidies will provide welcome relief as drivers are facing significant increases in the cost of petrol and diesel.

Since the Russia-Ukraine conflict began on the 24th February, the price of crude oil jumped from around $90 a barrel to $124 in two weeks. Although prices have fallen again in the last week, the price is likely to remain volatile for some time as geo-political tensions around the world continue to simmer.

THINK LIKE AN ECONOMIST!

Q1. What is meant by the term subsidy?

Q2. Explain how a fuel subsidy is likely to help Filipino drivers.

Q3. Using demand and supply analysis, draw a diagram to depict the situation described in the article.

Q4. Explain why the price of oil has increased since the Russia-Ukraine conflict began.

Click here for the source article

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