EDITORIAL— Waiting for relief

World crude oil prices went past $80 per barrel on July 8, and continued surging as the US-Iran war escalated anew, surpassing $100 per barrel as of yesterday.

Additional pressure on domestic pump prices is coming from the weakening of the peso, which skidded yesterday to a fresh all-time closing low of 61.847 to the US dollar.

Consequently, local pump prices are expected to rise anew next week, with diesel – the fuel of mass transport and delivery vehicles – seen increasing by up to P6.50 per liter and gasoline by up to P6.

The renewed increases are reminding the public about the unfulfilled promise of relief through a suspension or reduction of fuel taxes.

After the US and Israel attacked Iran on Feb. 28, triggering the latest conflict, Congress passed with impressive speed a bill empowering President Marcos to suspend or cut fuel excise taxes, upon the recommendation of the Development Budget Coordination Committee in coordination with the secretary of energy, if world crude prices hit or exceed $80 per barrel for a month.

The President signed Republic Act 12316 on March 25, but the special power granted to him was never fully exercised. Instead, excise taxes were cut only for kerosene and liquefied petroleum gas.

Fuel subsidies were given to public utility drivers and small-scale transport operators. Everyone else was left to cope with the unprecedented fuel price spikes.

Several quarters including business groups pushed for the suspension, reduction or permanent lifting of the larger 12-percent value-added tax on fuel, to provide relief to the majority of people, cut logistics costs and temper the expected inflationary impact of surging fuel prices.

But the government – as the President himself admitted – opted instead to hold on to its massive windfall taxes, ostensibly to finance its numerous dole-out programs. For every problem, the government’s default solution is ayuda.

Today, as his penultimate State of the Nation Address approaches, surveys show that inflation remains the top concern of Filipinos. This sentiment is surely related to separate surveys by different pollsters, showing the President’s trust and approval ratings in steady decline.

His fifth SONA approaches as Filipinos brace for yet another hefty price increase at the pumps next week. Inevitably, people are remembering the unfulfilled promise of across-the-board relief from fuel taxes.