As oil companies move to implement a big time oil price hike starting this week, an opposition leader aired strong suspicion that government economic managers are blocking efforts in Congress to suspend excise tax on petroleum products for at least six months.
Deputy Minority Leader and Bayan Muna Rep. Carlos Isagani Zarate said these developments should prompt the leadership of the House of Representatives to expedite the third reading approval of the bill that proposes to suspend excise tax on petroleum products for six months.
'"This pending consolidated bill is, in fact, already a watered down version to fast track its approval, but, it seems Duterte's economic managers are blocking efforts to at least ease the burden of consumers, especially now that a new round of oil price hikes is to be implemented,” Zarate said.
The Lower House quickly acted on House Bill 10488 last year, completing the sponsorship and plenary debate on November 22. That was when oil prices rose in an unabated manner for almost the whole of 2021.
However, the steam in passing the measure appeared to have died down as oil companies started reducing their prices by the time Congress showed a seeming resolve to pass HB 10488.
No further action was taken by the House leadership on the bill until Congress went on break last month. Oil prices started rising anew since then.
"We know that House Speaker Lord Allan Velasco was pushing for the measure to be passed in December but it did not happen,” lamented Zarate.
“We hope that the House leadership can rally most of the House members to pass the measure this month and not be sidetracked or even bamboozled by Malacanang's economic managers," he said.
Oil companies will start 2022 with big time oil price hike. Gasoline will increase at P1.90-P2.00/L, diesel at P2.20-P2.30/L and kerosene at P1.80-P1.90/L.
"This will be added on top of the net increase in 2021 for gasoline at P17.65/L, diesel at P14.30/L and kerosene at P11.54," revealed the Deputy Minority leader.
"The suspension of the excise tax on oil products would be a welcome reprieve for struggling public transportation drivers and operators, farmers, fisherfolks and consumers from the still continuing oil price hikes,” said Zarate.
“Though we maintain our strategic position to repeal the anti-people provisions of the TRAIN law, the speedy approval of this urgent bill is a step at the right direction and reflects the true and dire situation of our people on the ground, who are still coping with the pandemic-aggravated crisis," he explained.
According to Zarate HB 10488 will effectively place most fuel prices to pre-TRAIN law levels, “specifically for regular gasoline, diesel, LPG and kerosene, oil products mostly used by consumers.” “As proposed, the excise taxes for these products will be zero, except for regular and premium gasoline, for six (6) months once the law becomes effective," he said.
"We strongly urge Malacañang to stop its opposition to the measure and certify the bill as urgent to expedite its passage by both houses of Congress for the benefit of our people, the poor especially," the Bayan Muna lawmaker stated.