Release P3-billion fuel subsidy now, Poe urges DOTr
SURGING PRICES | An attendant updates the prices of fuel products at a gasoline station in Makati City. (Photo by RICHARD A. REYES / Philippine Daily Inquirer)
MANILA, Philippines — The (DOTr) must now speed up the release of the P3-billion fuel subsidy for the public transport sector to help operators and drivers cope with the unabated surge in fuel prices, Sen. Grace Poe said on Monday.
In a statement, Poe also renewed her call for the Department of Finance (DOF) to suspend the imposition of excise taxes on petroleum products, or Congress will be forced to intervene.
“The DOTr must immediately issue the memorandum circulars and execute the memorandum of agreement necessary for the release of the long overdue fuel subsidy,” she said, lamenting that the P3 billion allotment of Congress for fuel subsidy has barely been used as the year is about to end.
Poe, chair of the Senate Committee on Public Services, made the call amid the latest petition of the public transport sector for a fare increase.
Amid the upward trend in diesel prices, a transport group over the weekend said that it would formally file a petition before the Land Transportation Franchising and Regulatory Board (LTFRB) on Tuesday, seeking a P1 provisional fare increase for the first kilometer.
Article continues after this advertisementIn a radio interview, the Pangkalahatang Sanggunian Manila and Suburb Drivers Association Nationwide Inc. (Pasang Masda) said that aside from the P1 provisional fare hike, the group will also seek an additional 50 centavos increase for every additional kilometer.
Article continues after this advertisementLRT fares, too
Earlier this month, fares for both the Light Rail Transit Line 1 (LRT 1) and the Light Rail Transit Line 2 (LRT 2) also increased, with a new minimum fare of P14 and a maximum fare of P35.
Fuel prices are seen to increase again on Tuesday, the sixth successive week of hikes for diesel and the fifth for gasoline and kerosene, according to the Department of Energy (DOE).
On Tuesday, the price of gasoline was raised by P1.90 per liter, diesel by P1.50 per liter, and kerosene by P2.50 per liter.
The adjustments have resulted in a year-to-date net increase of P13.40 per liter for gasoline, P8.60 per liter for diesel, and P5.14 per liter for kerosene, according to data from the DOE.
Poe has expressed concern over the impact of the series of fare increases on the riding public.
Look at alternatives
“While we understand that this series of prices increases of fuel further adds to the burden of drivers and operators, a fare increase likewise adds to the sufferings of our commuters,” she said.
She called on the DOTr and the LTFRB to look at other alternatives to help both the public transport sector and their passengers.
“Since [the fare increase] is a provisional issue, maybe the government should also exhaust provisional remedies,” she said, citing the fuel subsidy as one measure.
Poe expressed optimism that if only the DOF would heed calls for the suspension of the excise tax on fuel, it would help in stabilizing fuel prices; otherwise, Congress will do it through legislation, she said.
“I file [a bill abolishing the excise tax on fuel] every Congress and will do so again in the future if necessary,” she said.
The government must serve as the refuge of the drivers every time an increase of fuel prices in the world market looms, Poe added.
