Manila: The government is taking steps to wean itself away from dependence on imported fuel, officials said as Filipinos try to come to grips with a wave price increases of petroleum products.

In a press briefing, Land Transportation and Franchising Regulatory Board (LTFRB) Chairman Thompson Lantion said that by 2010, "100 per cent" of the country's public utility transport, particularly bus, taxis and jeepneys (indigenous mini-bus) will be running on either Compressed Natural Gas (CNG) or Liquified Petroleum Gas (LPG).

"CNG and LPG is cheaper compared to diesel and gasoline in a price per litre comparison, plus it is not that taxing to the environment because it is carbon negative," Lantion said.

Being "carbon negative," CNG and LPG does not release more carbon dioxide emissions that what is already in the atmosphere.

Presently, Philippine public transport is heavily dependent on diesel, which like petrol, is largely imported from abroad.

According to the government, the Philippines imports 70 per cent of its fuel requirements and any price disruptions in the world market, such as what is happening right now, impacts on motorists and consumers as well as the overall economy.

Oil purchases

The country spends most of its foreign currency in purchasing oil from other countries.

Lantion said the government had recently announced that it has released a one billion pesos (Dh83.5 million) budget to convert current diesel fuelled jeepneys to bi-fuel transport that is switch from using either diesel or LPG.

The LTFRB official said the budget will be used to provide loans to jeepney operators so that they can convert their units to run on both LPG and diesel.

As for the buses, the government is currently working on a programme to extend similar loans to bus operators.

Taxis running on LPG had been on Philippine roads since seven years ago and Lantion said a programme will be initiated by the government to make more of these types of public transport to convert to bi-fuel systems.

Aside from bi-fuel conversions, Lantion said the government will also be completing the "loop" connecting the elevated Metro Manila rail system, the Light Rail Transport and the Metro Rail Transit.

The completion of the loop had been delayed by several years due to legal issues concerning the government and the project contractors.