DOE eyes diesel discount for fishermen (4:45 p.m.)
THE Department of Energy (DOE) is now exploring the possibility of allowing fisher folks in Zamboanga to get P3 to P5 per liter discounts in the price of diesel to address the impending increase in the prices of canned products.
According to Energy Secretary Angelo Reyes, he was instructed by President Gloria Macapagal-Arroyo to find a solution to the problem of the sardines manufacturer in Zamboanga which recently declared of increasing its prices next month.
“We have touched base with Petron and Shell to study how we could assist the fisher folks,” Reyes said at the awarding of the contract under the Philippine Energy Contracting Round (PECR) held at the DOE main office in Taguig.
Reyes said they have asked the small fisher folks to organize themselves and put up a cooperative.
The cooperative then can secure the P3 to P5 per liter discounts on the pump prices of diesel for bulk orders from Shell and Petron.
Citing Shell’s estimate, Reyes said in Zamboanga alone, the demand for oil on a monthly basis was placed at 3 million liters while General Santos, the country’s tuna capital, has a demand of 2.7 million liters monthly.
Aside from giving discounts, Reyes said the Philippine National Oil Company-Exploration Corp (PNOC-EC) has been directed to coordinate with the local officials in Zamboanga to discuss the possible delivery of coal supply, which is being used by the can manufacturers to make tin cans.
“We have directed PNOC-EC to supply 7,000 tons of coal to Zamboanga every other month to address the problem on coal shortage in the province,” Reyes added.
Another possible solution, which the DOE is looking at, is the provision of subsidy by utilizing the windwall profits from the value-added tax (VAT).
“I have discussed with Finance Secretary (Margarito) Teves on how the ‘Katas ng VAT’ would be used for this purpose,” the energy chief explained. (MSN/Sunnex)
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