Urgent measures pushed vs oil price increases

MANILA, Philippines — A House leader yesterday pushed for urgent legislative measures to mitigate the impact on Filipinos of rising fuel prices brought about by the ongoing conflict between Russia and Ukraine.

Deputy Speaker and 1Pacman party-list Rep. Mikee Romero said that apart from the proposed temporary suspension of excise tax on oil products, the government should revive its “Pantawid Pasada” program for the public transportation sector that is already feeling the impact of rising oil prices.

“This is an emergency situation right now. The continuing spike in oil prices affects not just the transport industry but everything and everyone. The prices of basic goods are increasing because of domino effect. The Filipino people will suffer if we don’t act now,” he stressed in an interview with Agenda on One PH.

Romero cited the need to provide assistance to operators and drivers of public utility vehicles like buses, taxis and jeepneys.

“We are planning to bring back the Pantawid Pasada program of government, which will give P6,500 in subsidy to PUV drivers,” he revealed.

Romero, an economist, also cited the need for a law that would suspend excise tax on fuel under the Tax Reform Acceleration and Inclusion Law to control oil prices.

“From P4.35 in 2018, excise tax on unleaded gasoline is now P10 pesos per liter due to TRAIN Law. Imagine suspending the excise tax, we can bring down the price from P65 per liter to P55 per liter. That would be a big help not just to the transport sector but to ordinary Filipinos in general,” he argued.

The ranking congressman lamented that TRAIN Law actually provided for automatic suspension of the excise tax should world crude oil prices reach $80 per barrel.

“But that provision lapsed in 2020 and the global price is now almost $100 per liter. So we really need a stop gap,” he lamented.

But Romero admitted that their propositions would not materialize if the Palace does not heed their call for a two-week special session to address the crisis on oil prices.

“As a House leader, our hands are tied if no special session is called. We just need two weeks to pass these very precise measures,” he stressed, adding that many congressmen and senators have also supported his call for special session.

The deputy speaker expressed belief that there is no urgency for Congress to revisit the oil deregulation law as suggested by President Duterte.

“As an immediate measure, we need to suspend the excise tax first – even for just 60 days or 30 days for as long global oil price is above $80 per barrel,” he added.