No end to oil price hikes

 

THE Department of Energy said the prices of petroleum products will continue to increase due to the escalation of conflicts in Libya and the Middle East, increased consumption of fuel in China, and uncertainties in demand for rehabilitation efforts in Japan.

Because of this harsh reality, the government came up with an alternative fuels roadmap that will serve as the fundamental policy framework on diversifying fuel for transport use in the Philippines to mitigate the impact of oil price hikes and reduce the country’s dependence on oil.

The roadmap, which sets out specific timelines and targets for utilization of alternative fuels, is supported by the Asian Development Bank.

The DoE is finalizing the Fueling Sustainable Transport Program which seeks to convert public and private vehicles from diesel and gasoline to compressed natural gas, liquefied natural gas, liquefied petroleum gas and electric power. With the FTSP, the government hopes to reduce the carbon footprint of road transport which accounts for around 50% of the total air pollutants in the country.

“It is a timely opportunity for the country to shift to alternative fuels. Alternative fuels have become a cost effective option. Since these alternative fuels are cheaper, we will be able to confront the dynamics of oil price volatility. Furthermore, these resources are cleaner than conventional diesel and gasoline and thus significantly help in reducing our carbon footprints,” the DoE said.

The FTSP is advancing the pilot phase of the electric tricycle program. The DoE likewise aims to launch a series of pilot runs of electric and LPG jeeps by the end of the year.

The government hopes to eventually reduce the number of gasoline and diesel-fed transport vehicles by 50%.

“We must create the market for these types of vehicles. While some of them may be expensive, the DoE, along with other agencies, and financial institutions will come up with mechanisms to make this more reasonable.”

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