(PNA file photo)
MANILA – President Ferdinand R. Marcos Jr. has ordered the shortening of “trigger period” and simplification of requirements for the release of fuel subsidies.
Marcos gave the directive during the review of mitigating measures for high fuel process in a sectoral meeting at Malacañan Palace in Manila on Tuesday morning, Energy Secretary Raphael Lotilla said in a Palace press briefing.
“The President gave instructions on changing the language of the 2024 GAA (General Appropriations Act) provision on fuel subsidies for the transport sector in order to shorten the trigger period from three months to one month and simplify the release requirements,” Lotilla said.
“It will shorten the period within which the subsidy can be released to our drivers. Because before, it would take three months, and the difference is quite obvious in terms of being able to help the transport sector,” he added, explaining that when the Dubai price per barrel exceeds USD80 for three months, that will be the “trigger” for the provision of fuel subsidies.
Lotilla said Marcos wants to simplify the release requirements because, in the past, it took some time to release the funds for fuel subsidies.
He said the existing policy mandates the Department of Transportation (DOTr) to first consolidate all the lists of beneficiaries given by the Land Transportation Franchising Regulatory Board (LTFRB), the Department of the Interior and Local Government (DILG) and the Department of Trade and Industry (DTI).
“So, we are simplifying all of these requirements so that the Department of Transportation will be responsible for the list for those which are under the LTFRB, then DILG will come up with the list for those which are with the tricycle drivers under the local governments and then, DTI will take care of the rest. And that will simplify the process,” Lotilla said.
“So, this time, as proposed by the Department of Budget and Management to Congress, the guidelines will need only to be agreed upon by the Department of Budget and Management, the Department of Transportation and the Department of Energy. And these can be released upon the finalization of the list of beneficiaries.”
Lotilla noted that the Executive Department’s proposal to Congress is to allot PHP2.5 billion for the provision of fuel subsidies in 2024, saying the proposed budget “would suffice to cover the amounts needed.”
Asked how soon the beneficiaries can expect changes in the guidelines for the release of fuel subsidies, Lotilla said it would take effect “as soon as Congress approved the [2024] GAA.”
“Since the Congress is right now considering the General Appropriations Act for 2024, doon na ‘yun isasalang iyong amendment from three to one month (that’s where the amendment from three to one month will be introduced),” he said.
Approval of 20% ethanol blend for gasoline products
Meantime, the proposal to raise the ethanol blend for gasoline products to 20 percent from the current 10 percent is targeted to be approved by end of 2023, Lotilla said.
He said the implementation of a higher ethanol blend to gasoline is “voluntary,” in an effort to further pull down gasoline prices.
“For those of you who are using gasoline, you know that we have a mandatory requirement of a 10 percent blend of ethanol with gasoline, and that the new policy (of raising it to 20 percent) that we will be implementing is voluntary. And this is primarily a price mitigation measure because ethanol, especially imported ethanol, is cheaper than the price of gasoline,” he said.
Lotilla also noted that the initiative will lower pump prices because of the increased blend.
“Right now, the price of gasoline without ethanol is around PHP56.89. Then, it will result in a price differential of around PHP1.28 or up to even PHP1.50, depending on, of course, the prices. The local ethanol price per liter is currently around PHP79.49, which is higher than the imported ethanol which is at PHP41.44,” he explained.
Lotilla said Marcos and his Cabinet are also eyeing the increase in the coco methyl ester or the coco biodiesel blend from the current 2 percent to 3 percent, stressing that the plan “can also drive down the cost of coco methyl ester.”
Continued electrification of transport sector
During the sectoral meeting, Lotilla said Marcos also directed concerned government agencies to work on the continued electrification of the transport sector, particularly mass transport and light cargo vehicles.
He said the President stressed the need to have charging stations for electric vehicles (EVs), as well as to prepare the economy for the eventual manufacturing of EVs in the country.
Lotilla said Marcos is also seeking to tap the local mining sector for the production of minerals needed for the production of batteries and other components for EVs. (PNA)
