The government should suspend the excise tax on oil to cushion the effects of the tension between Russia and Ukraine on the price of commodities, Senator Francis “Kiko” Pangilinan said on Monday, Feb. 28.
Pangilinan, a vice presidential aspirant, noted analysts’ prediction that price per liter of gasoline may increase from P68 to P77 while the price of diesel may go up from P59 to P73.
He cited that the continued oil price hikes may cause rising cost of other basic needs like transport and food.
“So ang direktang...tataas ang presyo ng pagkain. Gutom na naman ang haharapin ng ating mga kababayan kaya agad-agad dapat suspendihin yung excise tax sa fuel (So directly...food prices will go up. Our countrymen will face hunger again that’s why the excise tax on fuel must be suspended),” he said in a media interview.
While he urged the government to suspend excise tax, the senator also called for the immediate distribution of fuel subsidies to food producers and public transport drivers.
The Department of Finance (DOF), however, has expressed disapproval of the proposed suspension of the excise tax on oil, saying the Philippines will lose P147.1 billion in one year if the excise tax and value-added tax (VAT) imposed on fuel will be suspended.
The ill effects of the ongoing war between Russia and Ukraine underscore the need for food security and self-sufficiency, and the imperative for the Philippines to depend on itself to feed its people.
“Tulad ng pandemya, sisirain o yayanigin din ng giyerang ito ang food supply chain. Kaya napakahalaga na meron tayong sapat na pagkain dito sa atin (Like the pandemic, the war will ruin or shake the food supply chain. That’s why it’s important for us to have enough food here),” Pangilinan said.
“Kapag tinutulungan natin ang mga magsasaka at mangingisda na tumaas ang kanilang ani at huli, tinutulungan din natin ang ating mga sarili. At lalong lumilinaw ang puntong ito sa panahon ng krisis tulad ng pandemya at giyera sa Ukraine (When we help the farmers and fisherfolk to increase their harvest and in the end, we are also helping ourselves. The more this point becomes clearer during times of crisis like the pandemic and the war in Ukraine),” he added.
Prices of bread and flour-based products, meanwhile, are also likely to increase in price, according to reports. This, said Pangilinan, will hit close to home as many Filipinos are heavy carbohydrate eaters.
“Sa mga urban areas, noodles ang nagiging staple food dahil abot-kaya ito. Talagang kawawa ang mga kababayan natin kung pati ang presyo ng mga produktong ito ay tataas (In the urban areas, noodles become the staple food because it is affordable. Our fellowmen are pitiful if even the prices of these products will increase),” he said.
To address this, Pangilinan stressed it is urgent now more than ever to go renewable, own Malampaya, and live sustainably.
“Ganito kaimportante ang Malampaya (This is how important Malampaya is). We missed the opportunity to own Malampaya in November 2021. Ibabalik natin ang Malampaya sa kamay ng mga Pilipino kapag nanalo ang Robredo-Pangilinan tandem (We will return Malampaya to the hands of the Filipino if the Robredo-Pangilinan tandem wins),” he said.