Wednesday, May 28, 2008 P1B allotted for conversion of jeepneys into LPG
IN A bid to reduce dependence on expensive fuels, about P1 billion were allocated for the conversion of jeepney fuel tanks into liquefied petroleum gas (LPG) in the National Capital Region (NCR) and other regions, the Land Transportation Franchising and Regulatory Board (LTFRB) said.
LTFRB chairman Thompson Lantion said the government will make arrangements within the week with the Development Bank of the Philippines (DBP) to lend a total of P1 billion for the jeepney groups who want to avail of the government's LPG-conversion program.
Lantion said the LPG conversion kits from the Macro Liquid Petroleum Gas Co. Inc. that will be provided to the public utility jeepneys cost between P60,000 and P70,000.
Pasang-Masda, one of the country's transport groups, has already started testing 20 hybrid jeepneys using a mix of LPG, diesel or gasoline fuel that ply routes in Quezon City. Two units of pure LPG-fed jeepneys have also been availed of by the group Alliance of Transport Operators and Drivers Association of the Philippines.
Lantion said other jeepney groups, including the Pinag-isang Samahan ng mga Tsuper at Operator Nationwide (Piston) and Federation of Jeepney Operators and Drivers Association of the Philippines (Fejodap), have signified their support for the program.
"Jeepney operators can avail of the lending program at zero-interest and payable for at least two years. The budget that will be used for the program came from the government's collections from the Road Users Tax," he said adding that the program is one of the mitigating measures design to cushion the impact brought by the spiraling cost of gasoline and diesel in recent days.
The LTFRB chief said the LPG conversion program was approved by the government to mitigate the increasing fuel prices in the world market.
Earlier, the agency has officially submitted its proposal to offer a P2 per liter diesel subsidy for the transport sector in a bid to keep transport fares at their current levels amid rising oil prices.
It has already submitted recommendation to the Department of Finance for the subsidy program's implementation.
The additional subsidy for the transport groups has already been approved by several oil players during a meeting with LTFRB officials last Tuesday, the LTFRB said adding that the program will be implemented within the month or early next month.
Once approved, the P2 per liter diesel subsidy will be raised to P3 per liter to include the discount for public transport groups. A P1 discount on pump prices is now already being enjoyed by transport groups after various oil firms agreed to grant the subsidy since February.
Earlier, Transportation Secretary Leandro Mendoza said it will be much better if the government explores measures like the use of cheaper fuel which are now available like the use of LPG, Compressed Natural Gas (CNG) and ethanol.
"These technologies are now available in the market and we see these as one of the best solutions on the current crisis we are facing," he added.
Mendoza explained that instead of spending billions of pesos in subsidy, which will only last for three months, the government can use the money and help convert the jeepneys from diesel to any of these technologies.
The agency's proposals for a P2 fuel subsidy program for public utility vehicles have been submitted for Cabinet approval.
Lantion said the LTFRB had finished drafting the implementing guidelines of the program, which includes the distribution of a record booklet. He said the booklet, where a public utility vehicle's records will be indicated, could be used for three months.
The government, he said, will be spending around P2.1 billion worth of subsidy for three months. The said amount can convert around 20,000 jeepney units into LPG and only cost around P26 to P27 per liter, giving drivers at least P14 savings in fuel. (AH/Sunnex)
