Fuel subsidy starts today

MANILA, Philippines -  Operators of jeepneys and tricycles will get their fuel subsidy starting today.

Deputy presidential spokesperson Abigail Valte said Executive Order 32 aims to cushion the impact of continuing increases in fuel prices.

“It was not really meant to be the long-term solution to the (oil price hike) problem,” she said. “That is why it is called Pantawid Pasada.”

Speaking over state-run radio dzRB, Valte struck down proposals for a cash or rice subsidy in lieu of fuel subsidy to the public transport sector.

“Our target is the greater riding public, to avoid fare hikes,” she said. “That’s the point of the fuel assistance program.”

The EO institutes the Public Transport Assistance program (PTAP), named the Pantawid Pasada program, to initially allot P450 million to assist jeepney and tricycle operators.

It partially subsidizes the average consumption of identified public transport groups with legitimate franchises from the Land Transportation Franchising and Regulatory Board.

The energy department will also be using “smart cards” to ensure the integrity of the program.

For tricycles, the PTAP will subsidize a portion of their average consumption, while the remaining portion will be funded by local government units.

After a month of implementation, the DOE will submit a report to the inter-agency Energy Contingency Committee on the status of the PTAP.

It will then prepare a recommendation to President Aquino, who will decide whether to continue the program.

Under EO 32, the initial P450 million will come from the special account in the general fund of the DOE.

Presidential Communications Secretary Ramon Carandang said transport groups asking for more fare hikes will reconsider their plans following implementation of the EO.

“The goal is to ease the burden on the public transport operators so that they can also pass on the saving to the regular commuters,” he said.

Carandang said the government is studying whether to include farmers and fisherfolk in the relief assistance.

“There is limitation of fund, we can’t afford permanent subsidy for everybody. So given what we have, we target it where we feel it is most effective,” he said.

Lawmakers want VAT on petroleum suspended

Lawmakers will ask Finance Secretary Cesar Purisima to suspend the government’s collection of the 12 percent value-added tax (VAT) on petroleum products.

In a petition to be sent to Purisima today by the Makabayan bloc in the House of Representatives, the lawmakers said the suspension of VAT could reduce local pump prices by at least P5 per liter.

“The oil subsidy for public transport, even if extended to other poor sectors, would only reduce oil pump prices by a little over one peso (P1) and could only last for two months,” read the petition.

“A suspension of VAT, on the other hand, would ease the burden of consumers by more than five pesos and could be implemented as long as oil prices are increasing above the government’s projected $80/bbl.” Members of the Makabayan bloc are Bayan Muna, Anakpawis, Gabriela, Kabataan, Act Teachers, Katribu, Migrante and Courage.

It has seven party-list representatives in the 15th Congress.

The group said suspension of VAT would help the poor since the upper class consumes more fuel, and hence would benefit more from the reduction of pump prices.

“As more Filipino families find themselves poorer and hungrier, it is imperative for the government to tighten its own belt and suspend the VAT on oil as we all explore alternative solutions to this problem,” read the petition.

The government is being “insensitive in continuing to collect the VAT on oil products in the face of unbearable high prices of oil, goods and services,” the group said.— With Iris Gonzales