Liquefied petroleum gas (LPG) players appealed to the House of Representatives to address the problems of besetting small players in the industry through the passage of measures that would guarantee government subsidy for the replacement of six million LPG cylinders being used by Filipino households.
In a letter to Pampanga Rep. Juan MIguel Arroyo, chairman of the House Committee on Energy, the LPG Refillers Association (LPGRA) expressed disappointment over the move to approved substitute bills that would institute reforms in the industry that caters to at least 12 million Filipino households.
Bernardo “Bernine” Bolisay, LPGRA chairman and president, said the LPG Cylinder Replacement and Recovery Program under the bills require millions of government subsidy that would replace six million LPG cylinders.
He said nothing is mentioned in is the consolidated measures under House Bills 302, 5642 and 7251.
Bolisay posited that the program would adversely affect some six million poor households.
“Ang tatamaan nito ay yung mga mahihirap na may hawak ng mga substandard na silindro (Only the poor who have substandard cylinders will be affected by this),” Bolisay said.
He also complained that the bills propose replacement of LPG tanks every three years, adding that this will further add to the burden of small players.
According to Bolisay a similar program undertaken in Thailand took the government three years to carryout.
Without a subsidy some six million poor families would have to shoulder the cost of a brand new cylinder which costs around P1,500.
In the same letter to Arroyo, the LPGRA chair also proposed a longer transition period for the program he sees would take six years ans three months under the present circumstances.
“Dalawa lamang ang gumagawa ng silindro dito (There are only two who manufacture cylinders,” Bolisay pointed out.
He said the two cylinder manufacturers can only produce 40,000 cylinders each per month for a total of 80,000 cylinders per month.
“At that rate, replacing six million cylinders would entail six years and three months,” he said.
“The recovery and replacement of these six million substandard LPG cylinders undoubtedly need the active cooperation of our poorest and poor Filipino families by surrendering their substandard LPG cylinders in order to be replaced by new standard LPG cylinders,” Bolisay said.