MANILA, Philippines - An oil industry executive is proposing a P1 per liter special tax on oil to be used for infrastructure projects.
Fernando Martinez, Eastern Petroleum president, said the funds to be raised from the special levy could be used to finance crucial infrastructure projects in the country such as roads and bridges.
“We should tap a P1 per liter special tax on oil for infrastructure works, even just on gasoline, so that government can build roads and bridges,” Martinez told reporters.
He said this was done in the late 1980s when the government imposed a P1 per liter levy on gasoline.
However, Martinez said there should be consumer representation in the multi-sectoral group that would administer the fund.
“We can collect P10 billion to P15 billion a year from that,” he said.
He said this could be done in the next two years while the price of oil is still below $100 per barrel.
Early this week, oil companies implemented an oil price hike, the first after more than two months of price cuts.
The so-called Big Three, Pilipinas Shell Petroleum Corp., Petron Corp. and Chevron, which owns the Caltex brand, announced the price hike of P0.20 per liter for gasoline, P0.25 per liter for diesel and P0.30 per liter for kerosene.
Other oil players such as Seaoil Philippines, PTT Philippines and Eastern Petroleum also issued similar announcements.
The price hikes took effect Tuesday morning.