Too late the hero

When is a crisis not a crisis? When it’s a national energy emergency.

This is just among the numerous jokes circulating as we Pinoys as usual turn to humor to preserve our mental health while fuel prices spiral out of control.

Not that the terminology will matter in terms of relief for harried folks. Transport drivers and operators must give up at least half a day’s earnings to wait in line for P5,000 in fuel subsidy that may or may not be just a one-time aid. The P5,000, they sigh, is good for only one full tank of 30 liters of diesel plus a day’s three meals for a family.

President Marcos promptly signed on Wednesday night Republic Act 12316 that Congress passed in record time – two weeks, no bicameral conference – giving him the power to reduce or suspend the excise tax on petroleum products.

But relief won’t be immediate; the initial announcement was that BBM was still waiting for the “best time” to implement the law, and he himself probably has yet to decide whether it will be a full suspension or merely a reduction.

I thought he would be empowered to suspend excise taxes immediately when there is a state of national emergency, if we go by a provision in the Constitution.

Instead RA 12316 authorizes the President to adjust excise taxes only when Dubai crude oil averages $80 a barrel for a month. That price benchmark was hit only in mid-March, so we’ll still have to wait several more weeks for the one-month period “preceding” any order that might be issued.

And BBM can issue the order only when RA 12316 takes effect, which Malacañang pointed out is on April 12 yet – 15 days after the law’s publication yesterday in the Official Gazette. After that, we don’t know if the excise tax will be suspended or merely lowered.

The President’s authorization is good until 2028. But the tax relief is needed now. ASAP. Forthwith.

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Since instant relief is not possible, there are people who say that we should have aimed instead for a suspension of the expanded value-added tax on fuel, which at 12 percent is larger than the excise tax. But the higher the pump prices, the greater the EVAT that’s automatically collected, and the government isn’t about to let go of this revenue windfall.

Oil companies are being asked to absorb some of the losses by tempering the eye-watering jumps in pump prices. Their reaction boils down to, why doesn’t the government instead absorb the impact, by suspending both the excise tax and the EVAT? Facing the Senate yesterday, oil company executives narrated their difficulties in securing their petroleum supplies.

This refusal to sacrifice their healthy profit margins is anchored on their projection of a protracted war. Even with China stepping in and sending word to its ally Iran, no one wants to bet on the possibility of the war winding down, or at least of the Strait of Hormuz being protected from attacks.

At yesterday’s transport strike, with the excise tax still firmly in place and no early relief in sight, the messages in the placards were angrier and uglier than in the previous strike, bearing insults directed at BBM and calling him useless.

If the Strait of Hormuz would be opened before April 12 and all oil tankers would enjoy safe passage again, the government may even decide that the excise tax no longer needs suspension or lowering.

By the time the one-month period for the price requisite of $80 per barrel of crude is reached, US President Donald Trump might have already hightailed it to Cuba – of course after declaring an unqualified victory versus the nasties in Iran.

The nasties, in a video message laced with Pinoy-type humor, declared their own victory and told Trump, channeling his famous line in his “The Apprentice” TV show: “You’re fired!” Oh well, maybe Trump should be glad that the Iranians watched his show.

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BBM has come under criticism for being his usual laidback self in responding to the energy emergency. On the other hand, his defenders say his stance has a calming effect, preventing panic. He has said he does not intend to use his authority under the Oil Deregulation Law to temporarily take over companies in the petroleum industry – a move that could spook investors. He has also brushed aside calls to place fuel under price control.

This crisis is highlighting the failure of successive administrations to build a strategic national oil reserve, as stipulated in the Oil Deregulation Law. But the Philippine government isn’t known for strategic thinking and policy making.

Because the wait for excise tax relief is now akin to waiting for Godot, some quarters are suggesting that the President should invoke Section 17, Article XII of the Constitution, on “national economy and patrimony.”

Section 17 states: “In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately owned public utility or business affected with public interest.”

While BBM is loath to take over oil companies, cutting fuel excise taxes ASAP could fall under “directing the operation” of oil companies and gas stations, which fall under “private… business affected with public interest.” No need for RA 12316 to take effect.

Transport workers asked yesterday: Aanhin pa ang damo kung patay na ang kabayo? What use is the grass if the horse is dead?

If BBM waits until mid-April or later to grant the excise tax relief, whether or not the Middle East conflict is over, he risks being tagged as too late the hero.