MANILA, Philippines—Malacañang is setting aside P1 billion to help owners of jeepneys, buses and taxis convert their diesel- or gasoline-fed engines into ones that would run on much cheaper and environment-friendly fuels like liquefied petroleum gas (LPG) and compressed natural gas (CNG).At about P30 a liter, LPG is P20 cheaper than diesel. A liter of CNG is sold to seven government-accredited bus firms plying the Batangas to Manila route at a “pilot” price of P14.52 a liter. CNG is, however, available only at the Shell Mamplasan service station in Biñan, Laguna. President Gloria Macapagal-Arroyo Monday said that the money for the conversion program would come from the collection of the 12-percent value-added tax (VAT) on petroleum products, which is expected to reach P18 billion this year because of the soaring fuel prices. “As part of the juice from VAT and the Vehicle Pollution Control fund, we are launching today [Monday] a P1-billion fund that will serve as loans for those driving jeepneys and other public transportation so that they could change their engines and use liquefied petroleum gas and compressed natural gas and other alternative fuel much cheaper than gasoline and diesel,” Ms Arroyo said in a speech. CNG is basically made up of methane, while LPG is a mixture of propane, butane and other chemicals. CNG directly comes from a gas field (Malampaya off Palawan). LPG is a byproduct of crude oil. Interest-free loan At the 21st anniversary of the Land Transportation Franchising and Regulatory Board at the SM Mall of Asia complex in Pasay City, the President said operators and drivers of public utility vehicles (PUVs) could repay the loans in two years without interest. “According to Transportation Secretary Leandro Mendoza, your payment of your loan will be your boundary of P80 per day. We’re doing this so that this will not be too much for you. Where can you find that kind of loan scheme of P80 per day if you’re getting a loan of P200,000?” Ms Arroyo said. She said drivers and operators of jeepneys and buses would be the first to benefit from the loans. The government intends to convert the engines of 10,000 jeepneys so they can use alternative fuel. Last year, there were 887,023 jeepneys, taxis, buses and FXs for hire, according to the Land Transportation Office. Ms Arroyo said 20 percent of government vehicles would also be made to run on alternative fuels. By converting their engines, owners or drivers of PUVs can earn more, she said. “You have to convert your engines because the price of oil is really going up,” Ms Arroyo said. Conversion kit Prices of petroleum products have risen 15 times since January. Pump prices of gasoline are now more than P56 a liter, up from P44.50 in January, and are expected to reach P65 next month. It will take P200,000 to change an engine; P70,000 for a conversion kit, and P550,000 if one is to buy a new jeepney already using alternative fuel, according to Ms Arroyo. Mendoza gave reporters the exact figures, saying that it would cost P70,000 to convert a vehicle to 30-percent LPG use and P250,000 for 100-percent LPG conversion. For a jeepney converting into 30-percent LPG use, this would mean an additional P220 savings a day for an owner or driver, according to the transportation secretary. DBP and Postal Bank Public transport drivers and operators can avail themselves of the loans through the Development Bank of the Philippines and Postal Bank. The President said she had directed the Department of Energy along with the departments of science and technology, of trade and industry and of transportation to “oversee the shift or conversion to alternative fuels, composite fuels.” The P1-billion engine conversion program will raise to P4 billion the amount that Ms Arroyo has set aside for her program called “Juice from VAT.” Power subsidy Earlier, Ms Arroyo granted a P2-billion power subsidy (a one-time dole of P500) to help four million consumers using less than 100 kilowatt-hours a month pay their electricity bills and another P1 billion for scholarship and loans to poor students. In her speech, Ms Arroyo thanked transport groups for no longer pushing for a fare increase. She said she had directed Energy Secretary Angelo Reyes to step up the government fight against “colorum” vehicles (those without franchises) and men in uniform engaged in extortion. PUV drivers are deprived of P4,000 each month from their take-home pay due to extortion and colorum vehicles, according to Ms Arroyo. “If you don’t have these problems anymore, you can pay easily your loans,” she said. Open to switch After withdrawing all its fare hike petitions because these have been overtaken by the weekly fuel price increases, a transport group is considering switching from diesel to LPG use to trim fuel costs. “Now, we are looking at alternatives, including the conversion of diesel-fed engines into LPG-run ones,” said Zeny Maranan, president of Fejodap (Federation of Jeepney Operators and Drivers Association of the Philippines). Maranan said a switch to pure LPG, which has been tested for three months now on the jeepney of Boy Vargas, national president the party-list transport group 1Utak, could bring drivers a daily income of P300 to P500. Drivers are earning P100 to P200 a day depending on their diesel consumption and boundary rate. Studies said drivers’ daily incomes have shrunk drastically since the start of 2008 because of soaring fuel prices. Maranan said Fejodap, one of the transport groups belonging to 1Utak, was not in favor of the government-proposed 70-30 mix of diesel and LPG. Pure vs blended “With 70 percent diesel and 30 percent LPG, jeepneys would still be spending a lot on the more expensive diesel. And we hear it is more dangerous to have a mix than to have pure LPG. The added benefit is that using only LPG results in no smoke emission,” she said. But Maranan said a switch to pure LPG may not be implemented for all jeepneys. “It may not be favorable to all, since a widespread switch may drive up the price of the alternative fuel, like what happened when we switched from gasoline to diesel. Maybe an initial conversion for 1,000 jeepneys in various locations would give the maximum benefit. We are studying this further,” she said. Other jeepney groups under 1Utak are the National Transport Union, Alliance of Concerned Transport Organizations and the Associations of Land Transport Operators and Drivers Association of the Philippines. At the Mall of Asia, Ms Arroyo said that aside from subsidies and monetary assistance to give relief to those affected by high fuel costs, the government will push for energy conservation and energy development through investments in biofuels, exploration of oil in the country and its production. | 
