Boholanos favor Aquino's plan to freeze fuel prices

TAGBILARAN CITY, Philippines - Local consumers and officials in Bohol have favored the Aquino administration's plan, via an executive order, to suspend any increase of fuel prices.

Drivers of tricycle and other forms of public utility vehicles were unanimous in supporting the act of President Aquino, saying this will benefit the riding public once carried out.

Fuel prices climbed to P61.60 per liter for unleaded or premium gasoline, a record high of P59.55 per liter for regular gasoline, P56.25 per liter for kerosene, and P53.00 per liter for diesel.

These are not however the picture in Ubay town where "price wars" still prevails, resulting in prices lower than in this city and other towns, reports said.

Department of Energy (DOE) was quoted as saying that the "recent price hikes appeared to be higher than what official computation should indicate." It said the latest prices, P46.45 to P49 per liter for diesel and P53.60 to P60.81 per liter for gasoline, "have already breached record highs in 2008."

Jagna Mayor Fortunato Abrenilla, who was then director of the National Economic Development Authority before he become mayor, said the freezing of fuel prices "is a good thing."

This will have a trickle-down effect to ordinary citizens like the fishermen, he said but added that this may only be a temporary thing considering that the oil industry is being deregulated by the government, including the automatic hike of prices of oil whenever world market prices increase.

Former IBP-Bohol chapter president Boloy Boiser, for his part, had other proposals in mind, foremost of which is for the administration to lift the value-added tax (VAT) imposed on petroleum products.

This move is quicker and immediate to further shield the consumers from being burdened of fuel price hikes, he said. Another would be to repeal Republic Act 8479 or the Oil Deregulation Act, a move that would however entail much time for Congress to accomplish.

The lifting of the VAT would result to reduction of oil prices of about P5 to P6 per liter, which in turn would benefit the people, said an statement of the Bagong Alyansang Makabayan as it called on President Aquino to junk also the oil deregulation law.