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  Gov't to push compressed natural gas-fueled transport system this year  
     

MEDIA RELEASE

April 5, 2005

 
To mitigate the adverse effects of the continuously increasing prices of oil, the government will push the operationalization of its compressed natural gas (CNG)-fueled public transport system project this year.

Department of Energy (DoE) Secretary Raphael Lotilla said they will inaugurate next June the CNG mother gas stations and field out initial buses to serve the South Super Highway route.

The twin moves, Lotilla said, will also initiate the accelerated deployment of CNG fuel tanks and the use of compressed natural gas in vehicles.

In a media interaction at the Clark Special Economic Zone (CSEZ) on Monday, Lotilla expressed optimism that by December this year, the full deployment of the initial 200 CNG-fueled buses will be completed.

"Then, we will be able to negotiate with the Natural Gas Consortium (of China) for 2,000 additional buses to be deployed over a year’s time," he added.

When President Gloria Macapagal-Arroyo visited Beijing in September last year, she witnessed the signing of a Memorandum of Agreement between the DoE and the Natural Gas Consortium for the acquisition of an initial batch of CNG-fueled Chinese-made buses.

The agreement also provided for the consortium to invest in the setting up of CNG gas stations in the country and provide the needed CNG tanks to be fitted to vehicles.

The Energy secretary said the government is likewise trying its best to address through various means the concerns about the immediate impact of the rising oil prices.

Lotilla said petroleum companies have committed to continue and even expanded the number of gas stations offering diesel for public transport at one peso per liter discount, from 247 to 377 nationwide.

To ensure that there will be no "price gouging," the government, he added, will continue to monitor the oil price increases and appealed anew to oil companies not to suddenly jack up their prices and adopt instead a graduated price hike schedule to soften the impact on consumers.

Lotilla said that aside from the four-day workweek scheme, he has also appealed to all concerned to reduce the use of elevators, which he suggested "should stop only on every other floor instead of every floor," to help save energy.

In the case of power, Lotilla said the government has now significantly reduced the country’s dependence on oil by tapping indigenous energy sources like coal and natural gas.

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