2008-07-05 22:31:44 - The Pilipinas Shell - led P2/liter hike imposed by oil firms shortly after midnight last night, has triggered a hail of calls and proposals on how to cushion its "debilitating effects" upon the ordinary consumers.

By Marian M. Galang

MANILA

www.balitapinoy.net

In fact, House Speaker Prospero C. Nograles is urging government to take heed of his call to seriously consider using the windfall collections it continues to generate as Expanded Value Added Tax (EVAT) from oil imports, to subsidize fuel, particularly diesel.

At the same time, he warned that unless government intervention is made soonest, the P2/liter hike on

diesel is bound to cripple the country's public transport sector.

'Two pesos per liter increase on the pump price of diesel is way too much. If the government cannot prevent these unabated increase in fuel prices, it should at least find available ways and means to shield the public transport sector and the riding public from this global curse,' Nograles said.

As this develop, Nograles proposed a 'ladderized system' of subsidy for fuel and electricity using the government's unappropriated tax intake from EVAT to shield not only the poorest of the poor but also the country's middle class from the global economic crunch.

He pointed to the necessity of allocating P2-billion as subsidy for the Philippines' diesel and the LPG consumption for a period of four months.

Nograles said that there are 2 possible scenario by which his proposed ladderized scheme could be implemented.

Under the first option, public utility vehicles are to get an across-the-board diesel subsidy of 40 centavos per liter, while LPG users will get 75 centavos per liter.

Industry estimates show that the nationwide diesel consumption stands at 8.2 billion liters for every three months, while LPG consumption is estimated at 3.4 Billion kilograms for the same period.

If the second scenario were to be employed, Nograles said that subsidy on diesel shall be at 70 centavos per liter for the first 30 liters for jeepneys, first 120 liters for buses, and first 30 liters for taxis. The subsidy for LPG is P1.00 per kilogram.

With some optimism, Nograles said that the P2 Billion subsidy for diesel and LPG may be increased by the government, especially in the wake of the P2 per liter increase in diesel prices.

'The subsidy for diesel should be made available the soonest possible time,' he said.

Apart from diesel and LPG, Nograles is also pushing to subsidize some 9.4 million households consuming 500 kwh of electric energy and below, by P2-billion for four months.

Based on a report submitted by the Congressional Planning and Budget Department, the Department of Finance, has estimated that some P4-B were collected as windfall from EVAT on petroleum from January to April 2008.

Under Nograles' concept of the "ladderized" system of subsidy on electricity, some 113,062 residential users whose monthly electricity consumption is 401KWH to 500 kwh shall be entitled to a 43 centavos subsidy per kwh.

However, those 244,068 residential users with a consumption of 301 kwh to 400kwh are to get a 53 centavos subsidy per kwh, while the 587,001 households that consume 201 kwh to 300 kwh month, shall be given as a 71 centavos subsidy per kwh.

But the 1,488,882 households which consumes some 100 to 200 kwh per month shall get a rebate of P1.07/kwh, while those with 100 kwh and below in consumption, which is estimated at around 6,290,781 households shall be entitled to a P2.14 subsidy per kwh.

Nograles said his formula could provide an estimated monthly subsidy of P53.45 for every Filipino household under 500 kwh consumption nationwide or, a total of P214 per household for a period of four months
(Balita Pinoy - Philippine News & Analysis)