Cebu City Implements Fuel Cost-Cutting Measures Amid Global Oil Price Surge
In response to escalating global oil prices fueled by ongoing tensions in the Middle East, the Cebu City government has announced a significant shift in its fuel distribution strategy for barangays. Starting this April, the city will no longer provide direct fuel allotments to barangays, opting instead for a system of financial assistance to help manage local fuel needs.
Mayor Archival Details New Financial Assistance Approach
Mayor Nestor Archival explained that barangays will now oversee their own fuel requirements using funds already disbursed by the city government. "For the barangays, beginning in April, we will no longer give them a fuel allotment because I have already provided them with a fund specifically for their fuel expenses," stated Archival. This move is part of broader cost-cutting initiatives as diesel prices have surpassed P100 per liter, with warnings of potential increases to P120-P130 in the coming weeks.
Budget Allocations and Failed Bidding Impact
The city has allocated a substantial budget of up to P245 million for fuel throughout the year. Additionally, financial aid totaling P500,000 has been released to barangays to support their fuel costs. However, a recent bidding process for fuel supply failed due to a lack of interested suppliers, attributed to unstable market prices. Archival emphasized the urgency of proper management, noting, "They need to manage it well because if not, in the next six months, we might run out of gasoline."
Essential Services to Continue Receiving Support
Despite these austerity measures, Mayor Archival clarified that essential services will continue to receive fuel support. This includes:
- Garbage trucks
- Ambulances
- Fire trucks
- Police patrol cars
The reduction in fuel allocation also extends to some city government offices, reflecting a comprehensive approach to fiscal responsibility during this period of economic uncertainty.
