Garcia pushes electric vehicles to cut fuel costs

Garcia pushes electric vehicles to cut fuel costs
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CEBU City is ramping up efforts to transition to electric vehicles in a bid to reduce the City Government’s P10 million monthly fuel expenses as well as in compliance with a national law aimed at promoting sustainable transportation.

Mayor Raymond Alvin Garcia announced on Monday, Oct. 14, 2024, that the City Government will begin integrating electric vehicles (EVs) into its fleet, aligning with the Electric Vehicle Industry Development Act (Evida).

Garcia said that any future vehicle purchases by the City Government would follow Evida, which mandates that at least five percent of government-owned or -leased vehicles be electric.

Republic Act 11697, known as the Evida Law, has been in effect since April 2022. It is the government’s proposed solution to the ever-increasing fuel prices. It is also expected to promote the growth of the EV industry and help the country move towards greener, fossil-free transportation.

During a press conference at City Hall, Garcia confirmed that plans to implement EV use will be reflected in the 2025 budget. However, he did not disclose the specific figure for the budget allocation.

Garcia added that the City is still searching for EV suppliers, as there are limited distributors available in the Philippines.

Garcia said the City spends around P10 million monthly on fuel and maintenance for its more than 1,000 vehicles, a cost he aims to reduce by switching to EVs.

“I think that is a step towards the right direction and we would already venture into electric vehicles to start off with our electric buses,” he added.

Garcia tasked City Administrator Kristine Marie Batucan with drafting an executive order to begin the transition, starting with City Government offices.

He announced on Sept. 16 that the City Government plans to gradually replace its fleet of old government buses with EVs.

Garcia added that the City is considering phasing out 15-20 units of green tourist buses, potentially replacing them with electric buses.

However, he stressed that the old units might still serve as backup vehicles or can be sold, subject to the Commission on Audit guidelines.

Garcia pointed out the significant potential savings on fuel costs as a key motivation for transportation.

He added that while electricity consumption might increase by 10–15 percent, the savings on fuel and the environmental benefits would likely offset the increase.

Garcia also said the City is currently exploring different procurement options, including outright purchase of electric buses or a service fee arrangement with private providers.

The Department of General Services has already included this initiative in its budget, although specific amounts have not been determined pending formal proposals and feasibility studies.

Meanwhile, the Land Transportation Franchising and Regulatory Board (LTFRB) has already implemented the Evida Law, but LTFRB 7 Director Eduardo Montealto Jr. said it is not yet compulsory for operators to switch to EVs due to their high cost.

Currently, there are 100 EV units in Central Visayas, with 90 in Lapu-Lapu City and 10 in Bohol. However, only 37 units in Lapu-Lapu are still operational, and the Bohol units have been sidelined due to battery issues.

In a previous SunStar report, Cebu City Councilor Rey Gealon authored a resolution emphasizing the need for regulatory frameworks and guidelines that will encourage the transition to EVs in both public and private transport sectors. These include clear regulations on franchise issuance, fare structuring and operational incentives for EV adoption.

Gealon said EVs help reduce carbon emissions, enhance air quality and promote the use of renewable energy. He added that EVs are more efficient, pointing out that the cost of electricity is cheaper than fueling conventional vehicles.

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