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Friday, March 29, 2024

Drivers ask: ‘Where is subsidy?’

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A transport group denounced Friday government officials who, they said, failed to fulfill their promise to provide a P1-billion fuel subsidy for public utility jeepney drivers hit badly by the present health crisis.

This emerged as industry sources said consumers could heave a sigh of relief next week as the country's oil firms were set to implement a price rollback of not more than P1 per liter.

"Based on three-day trading, yes, it seems like there is a rollback," an industry source told reporters.

Orlando Marquez, president of Liga ng Transportasyon at Operators sa Pilipinas, lamented the non-release of the fuel subsidy.

“They're just fooling us,” he said, adding the government was only good at issuing press releases.

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Marquez said three weeks ago, his group met Transportation officials who promised the fuel subsidy.

Marquez said his group would push the petition for a 10-peso minimum jeepney fare hike in Metro Manila and other regions.

But the Department of Transportation is against it.

"I don't want an increase in jeepney fares because many people will be affected," said DOTr Secretary Arthur Tugade.

He said stakeholders should continuously look for other ways to help struggling jeepney drivers during the COVID-19 pandemic.

Last month, the government approved the P1-billion fuel subsidy for public utility vehicle drivers amid rising prices of fuel.

Land Transportation Franchising and Regulatory Board chairman Martin Delgra said the grant was for "legitimate qualified franchise holders and their drivers," most especially in the traditional public utility jeepney sector.

But he said there was no date when the subsidy would be released.

"This is pursuant [to] the Train Law, and the law is specific as to the recipient so PUJ sector will be the beneficiaries," he said.

The government initially planned to distribute the funds through the operators or franchise holders, but there is also a possibility that it will be given directly to the beneficiaries.

An industry source said another oil player confirmed the rollback, saying "yes, rollback for both products," referring to both diesel and gasoline.

"May not be more than P1 but higher than 50 centavos," the source said.

World oil prices softened this week after reports that the Organization of the Petroleum Exporting Countries and its allies announced plans to gradually increase production while demand has been affected by renewed spikes in covid cases and manufacturing problems in China.

On November 2, the oil companies implemented a price adjustment in domestic oil products.

Gasoline increased by P1.10 to P1.15 per liter but diesel and kerosene decreased by P0.35 to P0.40 per liter and P0.40 per liter, respectively.

These resulted in year-to-date adjustments to stand at a total net increase of P21.95 per liter for gasoline, P18.10 per liter for diesel and P15.74 per liter for kerosene.

Meanwhile, eight business groups urged presidential candidates and other politicians calling for the suspension of oil and electricity taxes to carefully reconsider their request.

“We understand the desire to bring relief to the public and offset rising inflation. However, instead of a blanket suspension or reduction in taxes, we urge them to consider tried and tested targeted measures to assist sectors and citizens who need it most,” the business groups. 

The new call came from the Financial Executives Institute of the Philippines, Foundation for Economic Freedom, GoNegosyo, Investment Houses Association of the Philippines, Makati Business Club, Philippine Chamber of Commerce and Industry, Philippine Retailers Association Subdivision and Housing Developers Association.

The groups stressed the proposal would limit government revenue at a time when more than ever the government needs funds to fight COVID and accelerate job-creating economic recovery.

“For example, on the oil tax, Public Utility Vehicles account for only around 30 percent of total diesel consumption. Therefore, most of the benefits of a blanket suspension would go to people who don’t operate or use PUVs, as well as other oil consumers,” the groups said.

They have similar sentiments that the taxes from the said commodities are funds that the government could and should use on public services that would most benefit lower income and vulnerable Filipinos.

The groups suggested targeted measures such as subsidies to the transport sector would offset the impact of fuel price increases, allowing PUV operators to maintain a decent profit and take-home pay without raising prices on the commuting public.

The measures could also include other cash transfers to low-income communities and sectors, taking advantage of and further developing the 4Ps and SAP systems that are serving these communities and sectors through past and present crises.

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