Filipino consumers must brace for financial strain in this initial week of the year, as the price of diesel products will be climbing by hefty P2.40 per liter; and gasoline prices will be increased by P1.85 per liter.

As stipulated in the price adjustment notices of the oil companies, the price of kerosene products will also go up by P1.85 per liter, except in gasoline stations of the areas still reeling hard from the ravages of typhoon Odette.

As of press time, the oil firms that already sent notices on their price hikes had been Pilipinas Shell Petroleum Corporation, Cleanfuel, Seaoil, PetroGazz, Chevron and PTT Philippines effective on Tuesday (January 4); while their competitor-firms are expected to follow.

Given these substantial hikes in pump prices and the upswing in international prices, calls are being revived anew on the interim suspension of fuel excise taxes.

As of the last day of trading in 2021, international benchmark Brent crude regained its strength to the level of US$78 per barrel – but that cost scale is still below the $80 per barrel threshold (reckoned on a quarter average) as set under the Tax Reform for Acceleration and Inclusion (TRAIN) Act.

In a statement to the media, Bayan Muna Representative Carlos Isagani Zarate prodded Congress leadership anew “to expedite the approval in the third reading of the bill that suspends excise taxes on petroleum products for six months.”

The lawmaker qualified the pending consolidated bill “is already a watered down version to fast-track its approval,” albeit he noted that “it seems Duterte’s economic managers are blocking efforts to at least ease the burden of consumers.”

Zarate explained that in the original version of the measure, the proposal had been “complete scrapping of excise taxes on oil products from the TRAIN law, but, in the spirit of critical collaboration and to expedite the approval of the consolidated bill, we agreed for at least six-month suspension.”

He similarly pointed out that even House Speaker Lord Allan Velasco was pushing for the bill’s passage in December, “but it did not happen,” hence, clamor is being resuscitated for the passage of the measure on temporary excise tax’s scrapping.

“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.”

In the world market, industry watchers are keeping tabs on the outcome of the January 3, 2022 meeting of the Organization of the Petroleum Exporting Countries (OPEC), primarily if there would be announcements that could impact on oil supply fundamentals.