Govt fuel subsidy for PUVs to last only 2 mos

The government’s fuel subsidy program for the public utility vehicles (PUVs) sector can only be kept running for the next two months, as the Aquino administration aims to ride out rising oil prices which it hopes would subside soon. Presidential Communications Development and Strategic Planning Office Secretary Ramon Carandang said it is difficult to say how long the oil price hike problem would last but he admitted government was only prepared to assist the transport sector for at least two months. “I think we have resources for the next two months to sustain these things. Beyond that it’s difficult to say," he said. President Aquino issued on Tuesday Executive Order No. 32 providing for the Pantawid Pasada subsidy for PUV franchise holders to help cushion the impact of rising oil prices on them. Carandang cited some economic managers and political and economic analysts abroad who expect oil prices to “stay more or less where it is, which is relatively high for the next couple of months." “Beyond that, mahirap ng sabihin [it’s hard to say], and even that, next couple of months, minimum of about two months, that could change overnight. So hindi talaga natin alam [we really don’t know]," he said. “But in general, may parang consensus na iyong presyo ng langis [there seems to be a consensus that oil prices] would probably stay more or less where it is, might even go up in the next couple of months," he said. Palace Spokesman Edwin Lacierda shrugged off the Pinag-Isang Samahan ng mga Tsuper at Opereytor Nationwide (PISTON)’s opposition to the fuel subsidy and their insistent demand to reduce the 12 percent value added tax (VAT) on oil. “Bagama’t tinanggihan po ng PISTON ang assistance program po ng pamahalaan, I’m sure kapag nai-rollout na po iyan, wala po akong duda na kahit mga miyembro nila ay gagamitin din po itong fuel assistance po na ito dahil kahit papaano makakatulong rin ho ito ng konti sa kanila," he said. (Even though PISTON rejected the government’s assistance program, I’m sure once it gets rolled out even members of PISTON will avail of the fuel assistance because every little bit helps.) “We believe that they rejected it as a matter of policy, but individual members of PISTON certainly would avail of the assistance program of the government," Lacierda said. He added that reducing the VAT would not have a direct effect on the public. Lacierda and Carandang said the government is doing what it can to extend assistance not just to the transport sector but the public in general, pointing out all the possible government responses to the rising prices of oil and other commodities are being discussed. – MRT/JV, GMA News