Governor Marañon on fuel subsidy program: LGUs have no counterpart funds

BACOLOD CITY , Philippines  — The local government units have no funds to cover the counterpart fund required for fuel subsidy for public utility jeepneys and tricycles, according to Negros Occidental Governor Alfredo Marañon Jr.

"It's okay if the funds will be given to the LGUs but the question is, from which source will the LGUs get the funds? As of now the LGUs have no funds for such purpose. It's already subsidizing the water, gasoline, and electricity of national agencies; it has no more budget for fuel subsidy," said the governor.

Maranon said the LGUs are subsidizing the fuel budget of the Philippine National Police, the judiciary, and even the salaries of casual workers of national agencies. "Almost all the budget of national agencies, including their office supplies are shouldered by LGUs," he said.

President Noynoy Aquino last Thursday signed Executive Order 32, known as "Instituting the Public Transport Assistance Program (PTAP)-Pantawid Pasada," providing fuel subsidies to tricycle and jeepney drivers.

The executive order mandates the allocation of P450 million from the special funds of the Department of Energy for the subsidy program, but it also provides that subsidies for tricycles shall be subject to availability of counterpart funds from LGUs.

LGUs regulate the operation of tricycles. "I think it is pretty clear there that the local counterpart funding will have to be made available," said Secretary Ricky Carandang of the Presidential Communications Development and Strategic Planning Office.

Aquino said that, based on studies by the Inter-Agency Energy Contingency Committee, the PTAP has been found to be the most equitable and efficient form of intervention to provide relief to the jeepney and tricycle sectors.

Marañon however countered: "For the meantime, the fuel subsidy is okay, but it is not sustainable. The best solution is, we must economize. For example, people should minimize using vehicles, and refrain from using these when there is no important matter to attend to. If possible, let us walk. It's a good exercise."

The governor even cited the example of China where most of its people use bicycles. "It's a very healthy mode of transport. We should have a bike lane in our roads and highways," he said.

Another solution is to use new model of vehicles that use less fuel, Marañon earlier said as he hoped the Department of Energy would also ascertain if most of the vehicles and equipment are very old and thus consume more fuel than modern models do.

"There are new equipment and vehicles now that consume lesser fuel. Like the US airlines, they now consume one-third of their old consumption. But then we have to invest in new models of vehicles and equipment. The question is, do we have a budget for that?" Maranon said.

"Presently, our farm trucks used in sugarcane are very old, which consume more fuel. Can the farmers afford to buy brand new ones?" he added. "There are new vehicles and equipment with engines that consume less fuel. For me, having this new equipment is the best fuel-saving device," Marañon said.