P500 M set for alternative fuels
The government’s Road Board has directed the release of P500 million from the road user’s tax to fund anti-pollution control measures, particularly the promotion of altenative fuels.
Deputy Presidential Spokeswoman Lorelei Fajardo said the Road Board approved the release of P500 million from the road user's tax or the Motor Vehicle User's Charge (MVUC) last Tuesday.
Republic Act No. 8794 which sets the MVUC provides that 7.5 per cent of all taxes collected under the Special Road Funds should be set aside for programs to fight air pollution.
The road user’s tax, considered the largest source of government revenues, is also intended for the improvement and maintenance of roads and drainage system and the installation of adequate and efficient traffic lights and road safety devices.
Presidential Management Staff Director-General Hermogenes Esperon Jr., who is also Pro-Performance Team chairman,. said the Department of Budget and Management (DBM) has facilitated the transfer of the P500 million to the Philippine Postal Savings Bank for use to promote the use of alternative fuels, such as compressed natural gas (CNG) to liquefied petroleum gas (LPG).
The Motor Vehicle User’s Charge (MUVC) of Republic Act 8794 provides that the 7.5 percent of all monies collected under the Special Road Funds shall be allotted to pollution control.
Public Works and Highways Secretary Hermogenes Ebdane Jr., who is the Road Board chairman, said the fund will benefit those who intend to convert to the use of alternative fuels.
Transportation and Communications Secretary Leandro Mendoza said he already directed the DOTC line agencies, such as the Land Transportation Franchising and Regulatory Board (LTFRB) and Land Transportation Office (LTO) to assist several transport groups who wanted to avail the fund.
Mendoza noted that several transport groups have expressed interest in availing themselves of the funds.
Fajardo added the LTFRB and the LTO have been mobilized to help interested transport groups in availing themselves of the funds.
The conversion of gas-fed engines to greener fuels is one of the programs of the President to lowere the expenses of transport drivers and operators on imported fuel, as well as clean up the environment.




