Metro Manila (CNN Philippines, June 22)— With no end in sight to volatile fuel prices, Senate committee on energy chairman Sherwin Gatchalian is proposing a ₱3,000 monthly subsidy for public utility vehicle drivers for the next five months.
In a media interview on Wednesday, Gatchalian said ₱4 billion should cover the aid for drivers and operators registered under the Land Transportation Franchising and Regulatory Board (LTFRB).
“It’s not so big,” Gatchalian said. “We can do supplemental budget or we can get from the unobligated amounts in different departments.”
There are 264,578 beneficiaries under the first tranche of fuel subsidy for LTFRB-managed modes such as jeepneys and buses. Around 90% have received ₱6,500 each based on government data as of June 14, but it was supposed to be completed last March. The LTFRB promised swifter payouts in the next round.
Gatchalian said local government units should be the one to implement the fuel subsidy program for tricycle drivers. There should also be consultations for the amount needed by taxi drivers and operators, he said.
“The CEO of ExxonMobil said this might go as long as five years – this type of scenario and this is the CEO of the biggest oil company of the world… I hope he’s wrong,” Gatchalian told reporters at the Senate.
“We just have to prepare. We just need to make sure that our 2023 budget will have enough Pantawid Pasada and ayuda (fuel subsidy and aid),” he added.
The reelectionist said the government can also expand its service contracting program which provides compensation to drivers in exchange for free rides to the public.
Transport groups have been calling on the government to suspend excise tax, saying not everyone is covered by the fuel subsidy and “Libreng Sakay” programs.
But Gatchalian reiterated that hitting the brakes on excise tax should be the last resort, as it would cost the government some ₱300 billion in annual revenues. He said the government should carefully study ways to cushion the impact of rising fuel prices on the middle class.
Gatchalian also supports the proposal to amend the Oil Deregulation Law to provide a legal basis for fuel unbundling. This will compel oil companies to disclose their price computations as sought by the Department of Energy in a 2019 circular, but there is a temporary restraining order against it. Gatchalian acknowledged there should be safeguards against the leak of proprietary information.
In the meantime, he’s calling on the Energy department to clamp down on “abusive” gasoline stations. He said the agency should put up a hotline to receive consumer complaints.
“Kakataas pa lang ng international prices, mamayang hapon mataas na ‘yung kanilang presyo. Ang hawak nila, imbentaryo na two weeks ago, three weeks ago pa so binili nila yan at old price,” Gatchalian said.
“Kung may gasoline stations na umaabuso, i-revoke ‘yung kanilang mga permits,” he added.
[Translation: For example, international prices just went up, but some local gas stations would immediately hike prices in the afternoon. Their inventories were from two to three weeks ago so they bought them at old prices. The permits of abusive gasoline stations should be revoked.]
