MANILA, Philippines - President Aquino has signed Executive Order 32 providing fuel subsidies to tricycle and jeepney drivers, but deferred action on proposals to grant the same relief to farmers and fisherfolk.
The executive order, titled “Instituting the Public Transport Assistance Program (PTAP)-Pantawid Pasada,” allows the allocation of P450 million from the special funds of the Department of Energy for the subsidy program.
Under the EO, funding of the subsidies for tricycles shall also be subject to availability of counterpart funds from local government units. LGUs regulate the operation of tricycles.
“I think it is pretty clear there that the local counterpart funding will have to be made available,” Presidential Communications Development and Strategic Planning Office Secretary Ricky Carandang said.
The President said that based on studies by the Inter-Agency Energy Contingency Committee, the PTAP has been found to be the most equitable and efficient form of intervention to provide relief to the jeepney and tricycle sectors.
“In view of the Middle East and North African socio-political situation which triggered the high fuel prices, the IECC has determined that the public transport sector has been hardest hit by the oil price hikes given that oil is one of the major operating costs,” the EO read.
“The IECC found it imperative to adopt a contingency program to address the adverse effects of the oil price hikes on the prices of fuel, food and other basic commodities, particularly among the vulnerable sectors of the society, such as the public transport sector, the riding public, and consuming public,” it added.
The President said the IECC has unanimously recommended assistance to the public transport sector to cushion the impact of high fuel prices, particularly on vulnerable sectors.
The PTAP will be implemented in coordination with the IECC. The Department of Transportation and Communications (DOTC), the Department of Finance and the Department of Energy (DOE) are jointly authorized to determine the monthly funding requirement of PTAP.
“The PTAP shall partially subsidize the average consumption of the identified public transport group; Provided, that disbursement shall be made per franchisee and on the number of franchised units based on information to be provided by the DOTC through the Land Transportation Franchising and Regulatory Board: Provided further, that the DOE shall use smart cards to ensure the integrity of the disbursements,” the EO stated.
Upon the recommendation of the IECC, the EO said DOE “may review the list of those entitled to the PTAP to include other sectors whose operations may be classified as sensitive to high oil prices, and it may also suspend the PTAP when it determines that the impact of fuel costs on these sectors no longer exists.”
In the case of tricycles, PTAP shall also subsidize a portion of their average consumption. The Department of the Interior and Local Government (DILG) will have to coordinate with LGUs for the joint implementation of the PTAP.
After the first month of implementation, the DOE shall submit to the IECC a report on the status of the accomplishments of the PTAP. The IECC shall submit its recommendations to the President regarding the continued implementation of the program and its projected requirements.
In the implementation of the PTAP, the DOE shall coordinate with the following departments: Department of National Defense, DILG and DOTC.
Asked about proposals to extend the subsidy to farmers and fisherfolk, Carandang said “we don’t have a definite answer yet.”
He added they have not yet discussed long-term solutions but “we are expecting to make an announcement in a few weeks.”