STATE OF CALAMITY. Iloilo City Councilor Romel Duron, chairperson of the Sangguniang Panlungsod committee on transportation and public utilities, delivers his privilege speech calling for the national declaration of the state of calamity due to economic reasons during their regular session on Tuesday (March 1, 2022). He said a one-time fuel subsidy is not enough but in times of crisis there is a need for a monthly subsidy. (Photo courtesy of SP FB page)
ILOILO CITY – A member of the Sangguniang Panlungsod (SP) of this city on Tuesday called on the national government to declare a state of calamity for economic reasons.
“Declaration of a state of calamity should be issued by President Rodrigo Duterte for economic reasons and allow local government units to use their calamity funds for fuel subsidy to public transport groups and other mitigating measures. Oil companies must be strictly monitored to prevent hoarding,” said Lawyer Romel D. Duron, chairperson of the SP committee on transportation and public utilities, in a privilege speech delivered during their regular session.
The councilor said that while the national government has set aside PHP2.5 billion for the fuel subsidy program in a form of financial assistance or vouchers to public utility drivers/operators nationwide, it is not immediate.
Likewise, it is dependent on the three-month rule or when the oil price reaches or exceeds the USD80 per barrel based on the Mean of Plats Singapore (MOPS), the average of all trading transactions of diesel and gasoline as assessed and summarized by a Singapore-based market wire service Standard and Poor’s Platts.
Duron said the price of crude oil currently at more than USD92 could possibly hit USD130 per barrel if the conflict and sanctions imposed on the oil export of Russia will continue.
Russia accounts for 12 percent of global production and 24 percent of natural gas.
“In this conflict, the public transport sector is the most affected and suffered most, especially the tricycle, taxi and jeepney drivers/operators. Government action is needed now to mitigate the effect of world crude prices in the country, particularly in our beloved Iloilo City,” he added.
Approximately 2,538 traditional jeepneys, 2,000 taxis, and 1,800 tricycles are plying various routes in Iloilo City.
Duron said jeepney operators he interviewed claimed the PHP1,600 expenses they incurred in their operation are the same as their income.
Jeepney drivers, on the other hand, need to pay PHP500 for the boundary, and an average of PHP1,000 to PHP1,100 for fuel daily. For an average of 16 trips a day, they earn PHP1,600.
“They are at the mercy of their operators. Good some operators are reducing their boundary from an average of P500 and sometimes PHP350. If you are an operator your boundary is enough or even less to maintain your unit,” he said.
Duron said that a one-time fuel subsidy is not enough but in times of crisis there is a need for a monthly subsidy so there won’t be a demand for fare increase and avoid the domino effect to other commodities.
Proclamation No. 1218 signed by President Rodrigo Duterte on Sept. 10, 2021 has extended the state of calamity in the country due to the coronavirus disease 2019 (Covid-19) for one year, effective Sept. 13, 2021 until Sept. 12, 2022. (PNA)
