PCCI backs emergency powers to curb drastic swings in fuel prices
THE Philippine Chamber of Commerce and Industry (PCCI) said it supports granting President Ferdinand R. Marcos, Jr. the authority to stabilize fuel prices and reduce the burden on consumers.
In a statement on Tuesday, PCCI President Ferdinand A. Ferrer said the private sector is asking the government to temporarily mitigate the impact of higher fuel prices, citing the likely follow-on impact on goods and logistics prices as well as fares.
President Ferdinand R. Marcos, Jr. last week said he plans to ask Congress to grant him emergency powers to reduce excise taxes on petroleum products if fighting in the Middle East keeps oil prices higher for much longer.
The Philippines imposes excise taxes to boost revenue. Excise taxes on petroleum products were increased in three tranches from Jan. 1, 2018 to Jan. 1, 2020 by the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Between 2018 and 2020, the biggest excise tax increases were applied to diesel, liquefied petroleum gas and bunker, with rates rising from P2.50 to P6 per liter.
Mr. Ferrer said: “We support whatever means — whether reducing excise tax, VAT (value-added tax), or tapping other funding sources — because we are in a crisis.”
Oil firms will increase gasoline prices by between P7 and P13 per liter, diesel prices by P17.50-P24.25, and kerosene by P32 to P38.50 per liter, the Department of Energy said on Tuesday.
The hikes will result in pump prices ranging from P53.10-P73.40 per liter for gasoline, P63-P87.44 per liter for diesel, and P92.17-P125.17 per liter for kerosene.
“When fuel prices increase, the cost of moving goods increases immediately, and so do the prices of transporting goods,” Mr. Ferrer said.
He added “that the private sector has started implementing cost-saving measures — like carpooling, work-from-home arrangements, adjusting air-conditioning settings, a greater resort to bulk purchasing, and investing in renewables.” — Beatriz Marie D. Cruz
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