DOE seeks 30% fuel discount for farmers

Published May 14, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/14/doe-seeks-30-fuel-discount-for-farmers/

In the economic recovery pathway being fleshed out by the government, the Department of Energy (DOE) has proposed up to 30 percent fuel discounts for the agriculture sector to boost food production in the country.

Energy Undersecretary Felix William Fuentebella told reporters the agri fuel discount was one of the major proposals the department had elevated to the food security group of the Inter-Agency Task Force (IATF) on Emerging Infectious Diseases.

The proposed discount in the per-liter-cost of petroleum products like gasoline, diesel and kerosene shall be extended to those who are in the farming and fishery sectors. The energy official qualified though that the targeted “discount level” is still a work-in-progress, as this has yet to be discussed with the oil companies.

He stressed the price cuts shall not be done in the form of subsidy. Instead, it could be in a form of marketing strategy that oil firms must sort out as part of their contribution in reinforcing the state-underpinned food security agenda.

For instance, he said, oil firms could opt for ex-deal with the farmers in exchange for the discount. Oil firms could be compensated with farm harvests that the oil companies can dangle or bargain for in their marketing promotions.

Fuentebella conveyed that based on data provided by the Department of Agriculture (DA), the scale of fuel expenses of the agriculture sector hovers at ₱15 trillion yearly, hence, he emphasized that any price reduction on such spending could help them boost production.

Aside from fuel discounts, the DOE also advanced another proposal on transforming gas stations as “rolling stores” or drop-off points of farm goods, similar to what Petron Corporation had done on some of its retail outlets during the enhanced community quarantine.

Fuentebella said the “Petron model on farm harvests’ drop-off center” had been seen by the government as an ideal arrangement, so the farmers’ logistical hurdles in bringing their goods to the market can be partly addressed.

To recall, Petron has offered to sell farmers’ produce at its key stations via its “Kadiwa ni Ani at Kita” program, so they can be provided ease of access to consumers. It kicked off that initiative in 30 of its retail networks and is expanding to 60 stations.

Petron President Ramon S. Ang noted then that the company’s major stations “will become a lifeline for farmers in the province struggling to find a way to sell their fresh farm harvest.”

He professed that with the program, “we are able to help them sustain their livelihood in this time of crisis” while at the same time providing fresh fruits and vegetables could also be made readily available to the buying public.