THE Department of Energy (DOE) welcomed Malacañang's move to reduce the price of diesel for public consumption.
Energy Efficiency and Conservation Division senior science research specialist Genevieve Almonares confirmed that President Arroyo is set to sign a series of executive orders reducing tariffs on crude oil and refined petroleum products, asphalt, and other raw materials to stabilize prices.
Almonares said Arroyo will reduce the tariff on crude oil and refined petroleum products from three percent to zero to stabilize supply and lower their prices in the domestic market.
"Any decision that would lower the prices of goods or energy for that matter is a welcome development," Almonares said during a seminar on energy consumption Wednesday at the Grand Regan Hotel where DOE and the Philippine Information Agency (PIA) conducted an energy conservation seminar attended by head of regional offices.
Asked whether such decision from Arroyo would have an immediate effect on the public, Almonares said no. "Hindi natin agad malalaman ito (We will not immediately feel it)," Almonares said.
A tariff is a tax placed on imported and/or exported goods. A tariff is set with the intent of raising money for the government. At the same time, tariffs are applied to imported goods, intending to "protect" domestic industries from foreign competition.
Arroyo approved Tuesday the recommendation of the Cabinet-level inter-agency Committee on Tariff and Related Matters (CTRM) for tariff reductions on imported petroleum products and midstream steel products during a National Economic and Development Authority (Neda)-Cabinet meeting.
Reports also said the government would lose up to P4 billion in annual revenues in implementing the decision.
On the other hand, Alternative Fuels Energy Technical Division senior science specialist Gerry Palabrica discussed with DOE regional offices heads under the Alternative Fuels Program the following: the auto-LPG Program, electric vehicles, and bioethanol-blended gasoline for government vehicles.
"Our objective is to diversify the country's fuel resources, particularly in the transport sector while providing solutions to air pollution caused by vehicular emissions," Palabrica said.
Palabrica said based on the energy supply mix of the country as of this year, 66 percent of oil use is in the transport sector, 17 percent in industries, nine percent in residences, five percent in commercial, while three percent is in agriculture.
"We aim to increase reserves of indigenous fossil fuels and aggressively develop renewable energy potential. Auto-LPG promotes conversion of diesel use to LPG or Liquefied Petroleum Gas by private or public vehicles," he said.
Palabrica added that LPG results in less maintenance costs, cleaner engine, smoother combustion, and improved engine oil life for automobiles.
"It also has lower operating cost, as LPG is cheaper than gasoline," Palabrica added.
Philippine Information Agency 11 Regional Director Efren Elbanbuena is however concerned over the safeness of LPG.
This prompted Palabrica to remind that LPG conversion must only be done at shops accredited by the Department of Trade and Industry.
Palabrica also reminded the regional offices heads to comply with a memorandum directing all government agencies to use 10 percent bioethanol in their total gasoline requirement.
During the seminar, DOE officer-in-charge Assistant Secretary Mario Marasigan also disclosed that by February 6 or 9, all oil companies will be required to follow the E-10 provision of the Biofuels Law. This mandates them to blend 10 percent ethanol in their gasoline products. Most of the oil companies however began doing this as early as 2008.