Both chambers of Congress moved with unprecedented speed to pass the bill granting President Marcos special powers to suspend the excise tax on petroleum products.
Congress even did away with the bicameral conference after the House of Representatives decided to simply adopt the Senate version of the measure.
The President himself sought the special power ostensibly to give commuters some immediate relief from spiraling fuel prices.
Another week of dizzying fuel price surges, however, is approaching, with the excise tax still firmly in place: P6 per liter of diesel, P10 for gasoline, P3 for kerosene and P3 per kilogram of liquefied petroleum gas. The excise tax is on top of the 12 percent value-added tax slapped on all fuel.
Some transport groups want the VAT suspended as well or reduced alongside the suspension of the excise tax. And some sectors including businessmen want the excise tax scrapped altogether, since fuel is a basic commodity and not a “sin” product like tobacco or alcohol.
The measure, however, allows the President to suspend the excise tax only after crude oil hits $80 a barrel and stays at that level or higher for a month. Crude oil breached $80 on March 5. On March 19, Brent crude had surged to a high of $119 per barrel before settling at around $105 in early trading yesterday.
Amid the volatility, the President suspended fare hikes indefinitely. He has led the rollout of the government’s default response to every problem: ayuda or cash dole-outs, starting with P5,000 for members of the mass transport sector.
The rollout has been met with complaints of unfair targeting, inefficient distribution and – during the kick-off event – of epal politicians preening for the cameras. Another complaint of the beneficiaries: the P5,000 ayuda is too little and no one knows if it’s a regular thing or just a one-off aid.
As drivers lamented yesterday, they didn’t get a fare hike or a fuel tax cut, and now they’re being told to continue plying their routes.
High fuel costs hit everyone, including those who don’t own any vehicle. Logistics costs are factored into commodity pricing, passed on to consumers of food and most other basic needs. Relief from soaring fuel prices is needed by everyone, across all income groups.
People are wondering when the start of the one-month period of oil at $80 or higher will be computed. The government must avoid being seen to be reaping a tax windfall on the back of people’s suffering.