Jeepney, tricycle drivers to get gas discounts

An initial group of 13 retail gas stations owned by six oil companies have agreed to give discounts to jeepney and tricycle operators in an effort to cushion the impact of the rising world crude prices in the domestic oil market.

Energy Secretary Vincent Perez said the gasoline stations granting discounts to the transport sector include Petron’s Juan Luna station in Tondo; Seaoil stations in E. Rodriguez, EDSA-D.Tuazon and McArthur Hi-way in Potrero Malabon; Unioil’s Airport Road and NAIA Road in Parañaque and Quezon Avenue-D.Tuazon branches; CityOil in Old Sta. Mesa Manila, Commonwealth/Regalado and West Avenue; and USA 88 in Sucat Road-Paranaque and Ortigas Avenue in Pasig.

He said Caltex Philippines Inc. has also committed one retail station for the discount scheme.

The Energy chief said they are still talking with Pilipinas Shell Petroleum Corp. and Eastern Petroleum Corp. for the conduct of a similar discount program.

According to Perez, the discount will somewhat appease transport groups who are asking for a transport fare hike. Jeepney operators have threatened to file for a fare increase if diesel prices will breach the P15.50 per liter threshold. The average diesel price is now at P15.85 per liter.

The oil companies will provide a discount of between 20 to 50 centavos per liter, Perez said.

He said they are also convincing the oil companies to give more discount to existing bulk users like the bus operators. "I am urging the oil companies if they can come up with additional incentives for bus operators which already have pre-arranged deals with oil firms," he added.

He noted that the discount will not be limited to diesel as two retail stations of CityOil have also agreed to provide tricycles, which use regular gasoline, the same discount.

At the same time, he said they are working out an arrangement for the 2T oil being used by tricycles to make it compliant to the Clean Air Act (CAA). "We are looking at the possibility of using coco methylesther as substitute to this," he said.

A monitoring by the DOE shows that the benchmark Dubai crude has averaged $27.66 per barrel in August from $26.72 and $25.51 per barrel in July and June, respectively.

Despite the improving exchange rate, he said they expect more price adjustments. "Price adjustment is inevitable. We cannot stop it but we could help temper these adjustments," Perez said.