1-Utak avoids protest

MANILA, Philippines - Leaders from broad transport coalition 1-United Transport Koalisyon (1-Utak) said Friday that they will not be joining the protest action of the Pinagkaisang Samahan ng Tsuper at Operator Nationwide (Piston) on Monday. They said there are other means to address the concerns of the public transport sector amid rising fuel prices. "Their [Piston] issue is well-taken by the PUV [public utility vehicle] sector, but the timing is just off and it lacked preparation. On our part, it is not proper to join such actions considering the ongoing negotiations with the government to address the issues of the sector," 1-Utak Chairman Vigor D. Mendoza II. "Nakikisimpatya kame sa kanila dahil iisa lang naman ang aming tinututulan, and mataas na presyo ng krudo. Pero sa tingin namin, hindi lang ang tigil pasada ang solusyon sa problema [We sympathize with them because we are opposing the same thing, the costly fuel. But we think a transportation holiday is not the only solution to the problem]," Federation of Jeepney Operators and Drivers Association of the Philippines (Fejodap) president Zenaida Maranan said. "In the event that the LTFRB (Land Transportation Franchising and Regulatory Board) does not give the provisional fare hike and the fuel subsidy that they promised, the group will immediately start coordinating a transport strike," Ms. Maranan added. Recognizing the inevitability of the rising fuel prices, member groups of 1-Utak pushed the government to invest in alternative fuel infrastructure. On the sidelines of a multi-sectoral conference yesterday at the Department of Energy (DoE), transport leaders from 1-Utak said in interviews that although they still want to temper the weekly oil price hikes, they have already accepted the fact that oil price movements are beyond the Philippines— control. "We have to put our money where our mouth is. They [the government] are going to loose millions to subsidize the rising oil prices and they certainly cannot sustain that long enough. Although we welcome the subsidy, that [amount] would only be wasted if used in that way," 1-Utak chairman Vigor D. Mendoza II said. "Imagine how many public utility vehicles [PUVs] could be converted if the P3.3 billion would be allocated for engine conversion for alternative fuels like LPG [liquefied petroleum gas]," he added. 1-Utak, with members from various jeepney, bus and taxi groups, are proposing the conversion of diesel-powered engines to enable them to run on alternative fuels like LPG and compressed natural gas, or CNG. Last April, the Land Transportation Franchising and Regulatory Board (LTFRB) announced the additional P2 per liter fuel subsidy; but until now, it remains unclear how the subsidy would be sourced. Both the Land Transportation Office (LTO) and the LTFRB still cannot explain how the three-month fuel subsidy would be raised. "If the government really intends to give the additional fuel subsidy, they can do that immediately. We are doing everything on our part to tighten our belts, but the rise of oil prices is just intolerable and this is seen to continue until they [oil firms] recover P6," Fejodap— Ms. Maranan said in Filipino. Sought for comment, Transportation Road Undersecretary Anneli R. Lontoc said the slow implementation of the subsidy is due to the government—s thrust for a "deficit-neutral scheme," in order to help achieve a balanced budget this year and still have funds to finance infrastructure projects crucial to supporting economic activity amid a global economic slowdown. "We are still evaluating our options and we are looking at the potential windfall from the taxes of the increased [oil] price as a source of the subsidy, so that revenues for other government-funded infrastructure would not be affected," Ms. Lontoc said. As of April 29, the Department of Energy data showed that the retail pump price of diesel in Metro Manila ranged from P39.43/liter-P41.56/liter, but was at least P1 more expensive in the provinces. — Marian Grace S. Ramos, BusinessWorld