Pangilinan to gov't: Prioritize fuel subsidies, suspend excise taxes on oil
MANILA, Philippines — Vice Presidential bet Francis "Kiko" Pangilinan repeated his call to the government to focus on giving fuel subsidies to public utility services and agricultural workers amid the continued rise in pump prices this week.
He also pushed for the halting of excise taxes on oil products, saying that this will prevent an immediate impact on the prices of other commodities.
"The government should prioritize the distribution of fuel subsidies to the drivers of jeepneys, buses, tricycles, farmers and fisherfolk. A huge portion of their expenses goes to fuel," Pangilinan said in Filipino in a statement on Sunday.
According to him, fisherfolk typically spend majority or 70% of their expenses on fuel.
This week, Seaoil Philippines announced a hike in its pump prices. Gas prices increased by P1.45 per liter; diesel rose by P1.90 per liter and kerosene climbed by P1.70 per liter.
This marks the fourth consecutive week where local oil firms raised pump prices amid a seven-year high peak in global oil prices.
"The fuel hikes will have an immediate impact on the prices of food and basic commodities... In the end, the fuel price increases will affect all of us," Pangilinan said.
Pangilinan is the running mate of Vice President Leni Robredo, who is vying for the presidency in this year's elections.
Call to suspend excise taxes
For Pangilinan, the halting of excise taxes will "immediately mitigate" the oil price surges.
An excise tax is a tax placed on the production, sale or consumption of a commodity in the country, according to the Bureau of Internal Revenue.
The Tax Reform for Acceleration and Inclusion Law currently prescribes an excise tax of P10 per liter of gas, P6 per liter of diesel and P5 per liter of kerosene.
Data from the Department of Energy shows that gasoline, diesel and kerosene prices logged a total net increase of P17.65 per liter, P14.30 per liter, P11.54 per liter, respectively, last year.
Presidential aspirant Ferdinand "Bongbong" Marcos, Jr. also made calls to suspend on fuel excise taxes amid the surge in global oil prices last year in a bid to "negate the impact of runaway fuel prices on the transport sector", based on a statement issued in October last year.
Separately, eight business groups urged presidential candidates pushing to suspend oil and electricity taxes to reconsider their stand, explaining that these are needed for government revenues to support pandemic response and economic recovery.
In November last year, the groups said that public utility vehicles (PUVs) comprise of only around 30% of total diesel consumption, which is why they believed that the benefit of a blanket suspension on oil taxes will go those who do not operate PUVs.
These business organizations include: The Financial Executives Institute of the Philippines, Foundation for Economic Freedom, Go Negosyo, Investment Houses Association of the Philippines, Makati Business Club, Philippine Chamber of Commerce and Industry, Philippine Retailers Association and the Subdivision and Housing Developers Association.
In the same month, the House ways and means panel passed a measure seeking to suspend excise tax on oil products from Dec. 1, 2021 to June 1, 2022 or until global oil prices ease in a bid to provide "immediate relief to affected sectors."
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