Thursday, May 22, 2008 Energy chief rejects diesel subsidy for PUVs
ENERGY Secretary Angelo Reyes on Wednesday junked the proposed P2 per liter subsidy for diesel by the Land Transportation Franchising and Regulatory Board (LTFRB) to cushion the impact of the rising fuel cost in the world market.
Reyes said "instead of an additional subsidy from the government of P2 per liter of diesel for public utility vehicles (PUVs), the amount could better be used to set up a fund through which the transport operators and drivers can borrow".
He said these funds could help the drivers and operators in the conversion of their vehicles into either liquefied petroleum gas (LPG) or Compress Natural Gas (CNG).
"Transport operators and drivers can borrow to finance the conversion of their transport vehicles into LPG or CNG," he said.
According to Reyes, "this will have a better effect on the quality and condition of their vehicles on the road and reduce air pollution."
Early this month, the LTFRB has proposed to offer a P2 per liter diesel subsidy for the transport sector to maintain the current rate in fares in public jeepneys and buses as prices of fuel continue to soar up.
The LTFRB explained that providing the P2 subsidy is part of the mitigating measures that would cushion the impact of the fuel price increase in the international market.
Reyes earlier signed a certification reducing the tariff by one percent on oil imports as another measure to arrest the rising fuel prices.
Monitoring conducted by the Department of Energy (DOE) indicated that as of May 13, prices of unleaded gasoline ranged between P49.96 to P51 per liter; diesel at P42.94 per liter; and the 11-kilogram LPG cooking gas was placed between P574 to P620. (MSN/Sunnex)
