P500 million allocated to transport sector

CEBU, Philippines – Public jeepney drivers can soon avail of a soft loan to convert their diesel or gasoline-engine vehicles to run on liquefied petroleum gas (LPG) as government released P500 million allocation for such purpose.

Presidential Management Staff (PMS) Sec. Hermogenes Esperon bared the P500 million is taken from the road users tax which is intended for road maintenance, putting up of street lights and safety road devices as well as for anti-pollution measures.

“Pres. Arroyo is serious in addressing climate change while this is one measure that can mitigate the effects of climate change,” Esperon said.

Esperon said the money is already deposited in the Philippine Postal Bank but that guidelines have yet to be drafted of which the applications will possibly be coursed through the Land Transportation Franchising and Regulatory Board (LTFRB) and the Land Transportation Office (LTO) as these agencies have access to transport cooperatives.

The PMS Chief clarified that the money will be loaned to the transport cooperatives for their member-drivers to convert diesel or gasoline engine to one that can use alternative fuel mostly LPG.

The move is to further enhance climate change activities and mitigate its effects, according to Esperon.

Press Sec. Cerge Remonde said the allocation is in furtherance of the President’s Green Agenda as climate change is an issue that the President is serious in addressing as manifested by weekly updates on actions done to mitigate the impact of climate change and other related environmental concerns.  

Pres. Arroyo middle of last year also announced the allocation of a P1B budget for public utility vehicle drivers to convert their jeepneys from diesel to diesel-LPG where interested drivers can avail of the loan through the Development Bank of the Philippines.

The main advantage of converting to LPG is its low price which is said to be less than half the cost of petrol. The government on the other hand, has reduced the duty on LPG (or Autogas) in recognition of its unique clean burning properties that significantly reduce vehicle emissions. Duty levels on LPG are fixed until 2011.

The use of LPG is more environment-friendly as it reduces carbon emissions by 20 percent compared to most petroleum vehicles, this is learned.

Both Esperon and Remonde were with Pres. Arroyo when the latter made a visit to Bohol where she stayed overnight prior to her open engagements last Wednesday.   (THE FREEMAN)