The government has allotted P1 billion for the conversion of jeepney fuel tanks in Metro Manila and other regions into liquefied petroleum gas, the Land Transportation Franchising and Regulatory Board (LTFRB) said Tuesday.
LTFRB chairman Thompson Lantion said the government will make arrangements within the week the Development Bank of the Philippines to lend a total of P1 billion for the jeepney groups who want to avail of the government's LPG-conversion program.
Lantion said the LPG conversion kits from the Macro Liquid Petroleum Gas Co. Inc. that will be provided to the public utility jeepneys cost between P60,000 and P70,000.
He said the group Pasang-Masda has started testing 20 hybrid jeepneys using a mix of LPG, diesel or gasoline fuel that ply routes in Quezon City. Two units of pure LPG-fed jeepneys have also been availed of by the group Alliance of Transport Operators and Drivers Association of the Philippines.
Lantion said other jeepney groups, including Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide and Federation of Jeepney Operators and Drivers Association of the Philippines, have signified their support for the program.
He said jeepney operators can avail of the lending program at zero-interest and payable for at least two years. The budget that will be used for the program came from the government's collections from the Road Users Tax, he added.
The LTFRB chairman said the LPG conversion program was approved by the government to mitigate the increasing fuel prices in the world market.
P2 fuel subsidy
Lantion said the LTFRB's proposal for a P2 fuel subsidy program for public utility vehicles have been submitted for Cabinet approval.
He said the LTFRB had finished drafting the implementing guidelines of the program, which includes the distribution of a record booklet. He said the booklet, where a public utility vehicle's records will be indicated, can be used for three months.
Lantion said if approved, the program will cost the government P1.1 billion for every 26 days of a month.
He said the fuel subsidy has been "approved in principle" by President Arroyo, but has to get pass the evaluation process with the Department of Finance and Department of Budget Management.
The government has been working for ways on how to appease the agitated transport sector amid the non-stop increases of fuel prices.
Oil companies implemented its highest and latest price increase over the weekend.