Quezon City launches LPG conversion for tricycles

The Quezon City government yesterday launched the tricycle LPG conversion program in an effort to cut down fuel costs for tricycle drivers and bring down commuter fares.

The program, introduced by Rep. Nanette Daza, was supported and funded by the national government which tapped funding

from the value added tax in converting the

tricycles’ fuel use from gasoline to liquefied petroleum gas.

President Arroyo led the program’s launching at the Amoranto Stadium in Quezon City yesterday where she handed out P15,000 each to some 20 tricycle owners for the conversion of their vehicles.

Mrs. Arroyo also allocated P15 million for the free conversion of 1,000 tricycles in Quezon City.

The President acknowledged that tricycles still play a significant part in the transport of people in highly urbanized cities such as Quezon City and this mode of public transportation should also get support from the government.

“It is important that we help the tricycle drivers and operators so that they would no longer have to increase their fares for the commuters,” she said in Filipino.

Mrs. Arroyo noted that LPG costs 50 percent lower per liter than gasoline, and according to Quezon City Mayor Feliciano Belmonte Jr., 80 percent of taxis now use LPG.

Those in Quezon City interested in having their engines converted could apply for a P15,000 loan from the city’s LPG Conversion Financing Program, payable in 60 days.

Before the tricycles, the government also helped in providing financing for the conversion of public utility buses to compressed natural gas and taxis to LPG.

Oil and oil products were previously not covered by VAT but the law passed in 2006 amending the expanded value added tax law included this and electricity in order to increase government revenues.

With the sharp rise in world oil prices experienced during the first three quarters of the year, the government’s VAT collection went beyond expectation, giving it windfall revenues.

The President decided to use the windfall revenues for the government’s pro-poor programs.