Gov’t has funds for another fuel subsidy

Malacañang on Saturday said the government can afford to give another fuel subsidy to the public transport sector which is reeling from the new round of oil price increases.

Deputy presidential spokesperson Abigail Valte, however, stressed the government was against suspending of the value-added tax (VAT) on petroleum products.

“It is certain that we have funds if ever there’d be a decision to give a second tranche,” Valte said over government-run radio station dzRB when asked about the government’s Pantawid Pasada Program.

On Friday, Valte said the fuel subsidy for the public transport sector was a success since no demand for a fare increase was made by drivers and operators until the recent series of oil price hikes.

Suspend VAT on oil products

“Many are proposing to suspend the VAT (on oil products)… But if you will recall, the President has already said that the VAT is being used to fund the projects of the government. If we are going to remove it, it would be the government projects that will have problems,” Valte said.

She said there were other ways to address the rising cost of petroleum products and one alternative was the fuel subsidy for the public transportation sector.

She said the government was also monitoring the prices of other basic commodities to make sure the increases were reasonable.

“The (Department of Trade and Industry) is taking the lead…. As time passes, there really are increases in prices but we are making sure that those increases are reasonable and not too much,” Valte said.

Discuss price hike issues

She said on Friday that President Aquino had invited leaders of public transport groups to a meeting next week to address issues brought about by the continuous increase in the prices of petroleum products.

“We have no advisory on whether there will be a second tranche of the Pantawid Pasada Program. But it will depend on what will be taken up when the President meets with the leaders of the transport groups,” Valte said

Valte, however, said no promise from the administration was forthcoming at this time pending the discussions between the President and the leaders of the transport sector.

“The aim of the meeting is for the President to listen to them and to hear their concerns, and from that we might see how we can address their concerns,” she said.