Manila – Concerns are growing over potential increases in the cost of living as global oil prices rise. On Thursday, Senator Erwin Tulfo called for fuel tax relief to mitigate a possible surge in the prices of food and other commodities.
Fuel Costs and Consumer Impact
Tulfo explained that higher petroleum prices could lead to increased transportation costs, ultimately impacting the price of basic goods. He expressed hope that oil prices would not exceed $80 per barrel, fearing further increases in the cost of essential items like vegetables and fish. Tulfo questioned how Filipinos would cope with rising costs if fuel prices continue to climb.
To address the issue, Tulfo filed Senate Bill No. 1935, seeking the automatic suspension of excise taxes on fuel once global oil prices reach USD80 per barrel. The bill also proposes allowing the government to temporarily reduce the 12 percent value-added tax on petroleum products to provide further relief to consumers. Tulfo acknowledged potential revenue losses for the government but emphasized the importance of prioritizing the welfare of Filipinos.
Energy Security Measures
Alongside calls for fuel tax relief, Senate President Vicente Sotto III is advocating for increased energy security. Sotto filed Senate Bill No. 1934, the proposed Philippine Strategic Petroleum Reserve Act, which aims to establish a national petroleum reserve.
The proposed reserve would be managed by the Department of Energy and would be equivalent to at least 90 days of the country’s average national consumption. Fuel stocks could be released with the President’s authorization during supply disruptions, national emergencies, periods of price volatility, or natural disasters. Sotto stated, “Energy security is national security,” highlighting the current lack of a comprehensive state-managed strategic petroleum reserve in the Philippines.
Frequently Asked Questions
What is the main concern raised by Senator Tulfo?
Senator Tulfo is concerned that rising global oil costs could lead to a surge in the prices of food and other commodities, impacting the affordability of basic goods for Filipinos.
What does Senate Bill No. 1935 propose?
Senate Bill No. 1935 proposes the automatic suspension of excise taxes on fuel when global oil prices reach USD80 per barrel, and allows for a temporary reduction of the 12 percent value-added tax on petroleum products.
What is the purpose of the proposed Philippine Strategic Petroleum Reserve Act?
The proposed Act, Senate Bill No. 1934, seeks to establish a government-managed petroleum stockpile equivalent to at least 90 days of the country’s average national consumption to strengthen energy security and cushion the impact of global supply disruptions.
As lawmakers consider these proposals, will these measures be enough to shield Filipino consumers from the potential economic effects of rising global oil prices?
