Govt to provide fuel subsidy to jeepneys, tricycles

(Updated 5:51 p.m.) President Benigno Aquino III on Thursday announced that the government has approved a one-month fuel subsidy for public utility jeepneys and tricycles in light of the rising oil prices. Aquino said the details of the planned subsidy are still being finalized, but the government estimates about P400 million to P500 million would be needed for it. He said the funds would be sourced from government savings. "Ang naisip ho kasi, imbes na sa ibang paraan natin dadaanin ang pagtulong sa ating mga kababayan, diretsuhan na ang pagbawas dun sa presyo ng gasoline sa mga gumagamit ng pampublikong transportasyon," he said in an interview in Batangas. (We thought a subsidy is the best way of addressing the concerns of our citizens.) Aquino’s announcement coincided with a nationwide protest launched by transport groups against the rising prices of petroleum products. Smart cards President Aquino said the subsidy will be distributed to public utility vehicles with valid franchises through “smart cards" that will be provided by the government-owned Land Bank. He said they are already in the last stages of work with Land Bank and another bank that will be providing the smart cards on behalf of the government. He said these banks have systems in place to carry out the program. He likewise said that the government will assess the project’s implementation after a month to determine if it needs more funding or if it will be discontinued. "Depende sa kondisyon sa presyo ng krudo sa mundo (It will depend on the prices of oil in the world that time)," Aquino said. He said they are also about to conclude the inventory of jeepney and tricycle franchises. Aquino was in Bauan, Batangas, for the load-out ceremony of British Petroleum Whiting Refinery Project of the Atlantic, Gulf and Pacific (AG&P) Company at the AG&P Heavy Fabrication Yard. In Malacañang, Presidential Communications Development and Strategic Planning Office Secretary Ricky Carandang said the subsidy would be implemented even if a fare hike or a provisional fare increase is approved in the near future. “We’re hoping though to keep it there until fuel prices come down para hindi naman masyadong mahirapan iyung mga operators (to ease the burden of the operators). So that’s the intent of that, but if fuel prices come down or they may soften, we may remove the subsidy," he said. He said details of the subsidy and the executive order that would be issued to enact the proposal are still being worked out. He also clarified that the subsidy had nothing to do with the transport strike on Thursday organized by the Pinag -Isang Samahan ng mga Tsuper at Opereytor Nationwide (PISTON). Not enough Bayan Muna party-list Rep. Teodoro Casiño, however, said the subsidy approved by the government will not be enough to cushion the impact of rising oil prices on Filipinos as it will only benefit a single sector in the country. “The discount will affect only the transport sector, but high oil prices affect everyone: from housewives, power consumers, manufacturers, farmers and fisherfolk," he said in a text message Thursday. Casiño said that a “better option" for the government is to suspend the 12 percent value added tax (VAT) on petroleum products. He likewise said that the government should consider repealing the Oil Industry Deregulation Act of 1998 (Republic Act 8479) “to ensure a truly competitive fuel market." Casiño filed earlier this month House Bill 3455 that seeks to bring back government participation in the oil industry. - with Andreo C. Calonzo/KBK, GMA News