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Monday, June 02, 2008
Cebu City hikes funds for fuel by P3M
By Rene H. Martel
CEBU CITY -- With the increases in the prices of gasoline products, the Cebu City Government saw the need to hike its monthly allocation for fuel from P5 million to P8.2 million as of May.
However, both the cities of Cebu and Lapu-Lapu are implementing cost-saving measures to protect government resources and still ensure the delivery of basic services, like garbage collection and police mobility.
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For the past two months alone, Cebu City saw a P2.2 million increase in its fuel consumption. The City will have to pass a supplemental budget to cover the allocation deficit, said Cebu City Administrator Francisco Fernandez.
Lapu-Lapu City Administrator Teodulo Ybañez, for his part, said they already increased by 10 percent their annual budget for fuel to cover the expected price changes this year.
Fleet
But Cebu City, which is providing fuel for a fleet of 600 vehicles, is feeling the effects of the price hikes more compared to Lapu-Lapu City, which is only operating 10 dump trucks and garbage trucks, 20 police patrol cars and some vehicles of local officials.
This time last year, unleaded gasoline cost P39.45 a liter, while an 11-kilogram tank of liquefied petroleum gas (LPG) cost P460.
As of May 27, the Department of Energy (DOE) monitor showed that gasoline now costs P51.96 a liter, while the same LPG tank goes for P585 to P628.
The series of fuel price increases is giving the Cebu City Government a major headache.
Its gasoline and diesel supply will last only up to next month so it is hard-pressed to implement cost-cutting measures.
Until July
"Dako kaayo nato nga problema kinahanglang mag-review na sad ta sa allocation, kung pila ang kada sakyanan (We're experiencing problems already. We need to review the needed fuel allocation per vehicle). It (cost-cutting) was urgent before, it is more urgent now," Fernandez said.
General Services Office (GSO) Chief Ester Cubero said the City set aside P64 million for fuel this year.
But what is left is good up to July only, thus the City needs to appropriate the same amount for fuel until the end of the year.
She said the City used to allocate just P5 million a month for fuel; but starting last January, the City needed to spend more so it will have enough for all of its vehicles and that of the barangays, which get their supply from the City depot.
She said that last April, the City spent P6 million for fuel. For May, the City used P8.2 million, which is also the amount set aside for June.
The City buys 140,000 liters of diesel and 40,000 liters of gasoline each month.
Rescue
But since preparing the purchase orders for fuel takes three weeks from the time the GSO canvassed prices for fuel supply, there are already fuel price increases within that period that the City has to contend with a lot of underpayments.
"Nagpadala na ko'g letter ni mayor for additional budget. July na lang kutob ang atong fuel (I already asked Mayor Tomas Osmeña for additional allocation. Our fuel allocation will last up to July only)," Cubero told Sun.Star.
"Daghan man sad gud tan tagaa'g assistance, labi na ang barangays involved in garbage collection (We're assisting a lot of barangays, especially those with garbage trucks," she said.
The City is providing fuel to its fleet of around 600 vehicles. It also gives fuel to the vehicles of the 80 barangays, the police, and the Bureau of Fire and Penology (BFP).
Emergency
Cubero said garbage trucks, heavy equipment and the new Toyota Innovas used by the police and city councilors are allocated 600 liters of fuel each month.
Department heads also receive 150 liters a month, while vehicles used by the Department of Public Services and Department of Engineering and Public Works get 200 liters a month each since they are used often.
Fernandez said they must review the allocations to save on fuel. But he assured that emergency vehicles will not be subject to cost-cutting measures. Cebu City Fire Marshal Esmael Codilla said that when they already go beyond the allocation, Fernandez and Osmeña never refused to give more "for emergency purposes."
"Dili matag-an tagpila gyud, kay depende ra man kung nay operation (like when responding to fire incidents)," he said in a phone interview.
Cubero also said the City is currently experimenting on additives to gasoline and diesel so it could save on fuel.
She suggested that to cut on fuel consumption, City Hall officials and employees do not go out if it is not really a pressing matter.
"Mag-cost-cutting man ta. Unahon na lang tong for basic services (We're cutting on costs so we'll prioritize vehicles that deliver basic services)," she said.
Impact
Lapu-Lapu City's Ybañez said the City Government's practice of allocating an additional 10 percent to its budget for fuel has protected the City from the impact of the series of price increases.
He did not have available figures, though, of the City's annual budget for fuel.
He said the use of all City-owned vehicles had been strictly regulated since Mayor Arturo Radaza assumed office in 2001.
Vehicles of department heads only leave the City Government's garage in time to fetch the official in the morning and to bring the official home after office hours, he said.
Ybañez said Radaza also issued a memorandum ordering that all City Hall service vehicles should be at the garage at exactly 5 p.m. Only vehicles being used to inspect projects are excluded from the order.
But the City is not saving on the fuel costs of its garbage trucks especially after it was criticized by a business group for its failure to collect trash efficiently.
"We long have implemented austerity measures, but I don't think we should squeeze further the time schedule on use of our vehicles kay basin ug mapiang ang atong delivery of basic service," he said.
The City operates 10 dump trucks and garbage compactor trucks and is giving a monthly gasoline allowance to the Lapu-Lapu City Police office, which has 20 patrol cars.
Ybañez said to cut the fuel consumption of the GSO, which is the custodian of the heavy equipment, he will propose to the Solid Waste Management Board that a garbage truck pass each barangay only once. (With Allan I. Varquez/Sun.Star Cebu)
For more Philippine news, visit Sun.Star Pampanga. (June 2, 2008 issue)
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