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Mon May 12, 2008

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MANILA, May 08, 2008 (Asia Pulse Data Source via COMTEX) -- The national government has proposed a P2 subsidy for transport sector to cushion the impact of the rising fuel prices, a Land Transportation Franchising and Regulatory Board official said Wednesday.

Lawyer Manny Mahipus, LTFRB executive director, said they have already submitted recommendation to the Department of Finance for its implementation.

Its one of the mitigating measures (of the government) to ease the effects of the rising oil price increases, Mahipus told the weekly Sitio Fernandina forum in Greenhills, San Juan City.

Mahipus said the additional subsidy for the transport groups has already been approved by several oil players during the meeting with the LTFRB officials, led by Chairman Thompson Lantion, last Tuesday.

We hope that it (subsidy) shall be done soon within the month, Mahipus said when asked by reporters the start of the implementation of the subsidy to transport organizations.

Once approved, the subsidy given to the transport sector will be P3.

A P1 discount on pump prices is now being enjoyed by transport groups after various oil firms, including the Big three oil firms Chevron, Pilipinas Shell Corp. and Petron Corp. have agreed to grant the subsidy in February.

Meanwhile, Mahipus said the LTFRB has yet to meet again on May 12 for a public hearing on the provisional fare increase being asked for by public bus and jeepney operators in Metro Manila and in the provinces.

Regarding the fare hike, I cannot give you a definite period (of its implementation), the LTFRB official said.

On Tuesday, the LTFRB, transport groups and oil firm representatives met to discuss the possible granting of a provisional fare hike in light of the skyrocketing fuel prices and other basic commodities.

Mahipus said the provisional fare increase is merely a temporary relief for the transport sector which has bore the brunt of the continuous oil price hikes.

Also on Tuesday, a transport group said it will withdraw their fare hike petition earlier filed before the LTFRB.

The United Transport Alliance Koalisyon (1-UTAK), an umbrella organization of all major transport groups in the country, made the announcement during the formal closing of the energy summit organized by the Department of Energy (DOE).

Lawyer Vigor Mendoza, 1-UTAK national chairman, said jeepney and provincial bus operators have agreed to withdraw their fare increase request after the government managed to provide solution to the problems being faced by the transport sector.

Three issues have been resolved during the summit and we are satisfied with the results. The government also promised other matters to be addressed in the coming months, Mendoza said.

He said among the issues that have been addressed are the oil price rollback, the suspension of the computer fee increase being charged by Stradcom and the program of the Department of Transportation and Communications (DOTC) that will assist jeepney operators on their conversion.

Mendoza said oil companies have agreed to impose a P0.50 across the board rollback on diesel and gasoline prices trimming the discounted diesel price to P35.70 per liter.

We promise to withdraw our petition for fare hike if the government can keep diesel prices to P35.00 per liter, Mendoza said.

Another welcome development is the assistance program of the DOTC that will allow jeepney owners to convert their units from diesel to gasoline on a lease-to-own basis.

The program will allow jeepney owners to have their units converted to LPG which is P10 cheaper than diesel, without paying in full the conversion kits, Mendoza explained.

Lastly, the promise of the DOTC to stop Stradcom, the Information Technology Provider of the Land Transportation Office, from imposing the P10 increase in computer fee, an additional fee being charged by Stradcom to all LTO clients.

Copyright 2008 APU Newswire. All rights reserved.

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