DOE: P500-M subsidy likely to start in May

Jeepney and tricycle drivers may not avail of a P500-million government fuel subsidy until at least late April, the Department of Energy admitted Friday. DOE Undersecretary Jose Layug Jr. said it will take “three to four weeks" for accredited banks to print the smart cards for the fuel discounts, even as he said that the department is drawing up safeguards to protect the subsidy from abuse. “We expect to print out the smart cards in three to four weeks. Once, that printing is done, our task force, together with the Department of Interior and Local Government (DILG) and the Land Transportation Office (LTO), will set up a tent and distribute the cards in Metro Manila first," Layug said in an interview on dzBB radio. He also reiterated that only legitimate transport franchise holders can avail of the subsidy. Last Thursday, President Benigno Aquino III said the government has approved a fuel subsidy for public utility jeepneys and tricycles amid rising oil prices. Aquino said the funds would be sourced from government savings. Citing initial information from the subsidy plan, Layug said beneficiaries can avail of a discount of P2 to P3 per liter during the month-long program. “Linawin namin, ito ay pantawid lang, hindi ito patuluy-tuloy na pag-ayuda kasi nga temporary. Sa tingin namin isang buwan lang ito tatagal habang mataas ang presyo ng gasolina. Sana bumaba para pagkatapos niyan di kailanganin ang discount," he said. Also, he said the DOE will coordinate with the Land Transportation Franchising and Regulatory Board to draw up a list of legitimate franchise holders. On the other hand, he said the DOE is still screening banks that will print the smart cards, to make sure the cards are good only for fuel discounts. He also said they are initiating dialogues with transport groups to make sure the smart cards go to the drivers and not to the operators. Requirements Layug said drivers who want to benefit from the subsidy should bring a copy of their franchise documents and a valid ID card. He said the smart cards will include the plate number and franchise number of the holders. “Ang lista namin galing LTFRB, lehitimong prangkisa kaya di makalusot yan," he said. The DOE is also coordinating with the DILG to draw up a similar list for tricycle drivers as the local governments regulate the operations of tricycles. Militants: Scrap VAT instead Not satisfied with the government's offer of a one-month fuel subsidy, militants renewed last Thursday their call to scrap the 12-percent value-added tax (VAT) on fuel products. Militant umbrella group Bagong Alyansang Makabayan said scrapping the VAT on oil altogether will bring "bigger benefits (for) more beneficiaries." "The oil subsidy for the public jeeps and tricycles is not enough to mitigate the impact of weekly oil price hikes. There are bigger benefits and more beneficiaries if the government scraps the 12-percent VAT on oil altogether," Bayan secretary general Renato Reyes Jr. said in a statement on the Bayan website. He said scrapping the 12-percent VAT can result in a price reduction of P5 to P6 per liter, and the beneficiaries will not just be the drivers but also households, fisher folk and many others. In contrast, he said the P500-million government allotment for the subsidy is also small compared to the windfall revenues government is raking from the VAT on oil. Some estimates place the revenues from VAT at P4 billion for the first quarter of 2011, he said. According to him, the subsidy does not check the alleged overpricing committed by the oil companies, which Bayan estimated at P7.50 per liter. "The subsidy also does not protect consumers from price speculation which has resulted in steep prices," he added. Moreover, he said, overpricing and price speculation should also be addressed by scrapping the oil deregulation law. — LBG, GMA News