Senatorial aspirant and Sorsogon Governor Francis “Chiz” Escudero cited today, March 8, four possible solutions that may mitigate the impact of the increase in the prices of fuel to Filipino consumers, stressing that there is no need for President Rodrigo Duterte to declare a state of economic emergency.
Escudero said possible options are for Congress to hold a special session to pass a law that gives power to the departments of Energy and of Finance to lower excise and value-added taxes imposed on fuels, reactivation of the Oil Price Stabilization Fund, establishment of strategic petroleum reserve, and the review of the Oil Deregulation Law.
He said that removing the excise tax and VAT on petroleum products will lead to the reduction in the prices of fuel by P3 to P5 per liter.
As soon as the prices of fuel stabilize, Escudero said the government may re-impose excise tax and VAT on fuel products.
The OPSF, on the other hand, was previously used by the government to provide subsidy to oil companies when prices of fuel increase, Escudero said.
He added that the stockpiling of petroleum reserve, which is being adopted by many countries, is a must to ensure stable supply.
Oil companies imposed today a huge increase in the prices of fuel at an average of P3.80 per liter for gasoline, P5.50 for diesel, and P4.10 per liter for kerosene.
House Minority Leader Stephen Paduano also called for the temporary suspension of excise tax on petroleum products, and the review of the Oil Deregulation Law.
Provincial consultant Alfredo “Albee” Benitez also stressed the need to accelerate the distribution of support to the transport sector to cushion its impact. | GB
