Gov’t mulls diesel subsidy vs fare hike

President Arroyo said yesterday that the government will seriously consider a proposal to adjust gasoline prices to subsidize the price of diesel used by public utility vehicles to stave off fare increases.

The proposal was submitted to Mrs. Arroyo by Metro Manila bus operators and she said she has ordered Energy Secretary Vincent Perez to look into it and submit a recommendation as soon as possible.

"The Metro bus operators submitted to me several proposals," Mrs. Arroyo said. "All feasible means must be explored to alleviate the effect of oil price increases on the day-to-day lives of the most marginal sectors."

"The Department of Energy (DOE) will come up with the government’s position in due time, based on social balance and fairness to all concerned," she said.

The President announced this in her remarks during a visit with Perez to the UniOil gasoline station at Airport Road and Roxas Boulevard in Parañaque City, one of 26 refilling stations all over Metro Manila which give a 20 to 40 centavo per liter discount on diesel. Diesel prices are now pegged at P15.90 to P15.95 per liter.

"This program is in response to the present increase in the oil prices and rise of (the peso-dollar exchange rate)," the President said. "Other than this, there are other things we are doing to prevent the increase in fares."

"These special price incentives come in the form of either outright price discount(s) or discount coupon system," she added. "These steps would help (meet) the needs of jeepney drivers and avoid fare hikes."

Mrs. Arroyo lauded the gas stations offering discounts on diesel, including new oil industry players UniOil, SeaOil, Duty Oil, Flying-V and Total, as well as the so-called Big Three — semi-government owned Petron, Pilipinas Shell and Caltex Philippines.

"I hope that other oil players will expand their scope in this program so that public buses and tricycles will be included," the President said.

She explained that this "special assistance program" is being made available for members of the jeepney drivers and operators groups which include Piston, PCDO-ACTO, Fejodap, Percoda and Pasang-Masada, among others.

The President will meet today with Metro Manila’s mayors to discuss how local government executives can help address other concerns of the public transport industry, including the controversial "shared traffic ticketing system" and the proposed creation of a central regulatory agency to handle towing services and other traffic management measures.