Fuel price crisis could be as bad as Covid-19 pandemic, says House leader


The chairman of the House Committee on Social Services is calling for the formulation of a true-blue integrated approach to the worsening fuel price crisis.

This, as Quezon City 5th district Rep. Alfred Vargas expressed fears that the current fuel price woes would cause another "disruption" on the level of the Covid-19 pandemic.

(Ali Vicoy/ File photo/ MANILA BULLETIN)


“The social and economic impact of the war in Ukraine is being felt worldwide. It could lead to another great disruption, on a scale that could be similar to the pandemic. In the midst of uncertainty, it is imperative that our government and other sectors work as one in securing better protection for vulnerable segments of our society,” Vargas said in a statement over the weekend.

Russia invaded neighboring Ukraine on Feb. 24. Given Russia's status as top oil producer--and the sanctions from the west that it will be facing as a result of its act of aggression--the price of crude in the world market is expected to climb further in the coming months.

Local pump prices of fuel have predictably skyrocketed in the past few weeks, even as a whopping P12 per liter hike on diesel and P7 per liter hike on gasoline is expected to be implemented Tuesday, March 15.

“It is critical that the problem-solving approach to this impending national crisis be carried out in a whole-of-government, whole-of-nation approach, taking into consideration the statutory authorities of various governmental bodies--especially in the Executive Department and local government units (LGUs)--to create a rational, comprehensive, and integrated policy solution or a series of such actions,” Vargas said.

Under the solon's proposed mutli-sectoral consultation, government should be represented by the Department of Trade and Industry (DTI), Department of Local and Interior Government (DILG), Department of Labor and Employment (DOLE), Department of Energy (DOE), the Department of Social Welfare and Development (DSWD), and other concerned government agencies.

The goal of such a consultation is to “mitigate the impact” of rising oil and food prices by providing more social protection for vulnerable sectors.

Vargas said various sectors have proposed a host of solutions ranging from increasing the minimum wage to the suspension of excise taxes. But he reckoned that “no one solution is enough to fully or sufficiently address and encapsulate this multifactorial problem.”

He also sought the inclusion of representatives of cvil society and sectoral groups in crafting policy interventions.

“Policy solution-making should consider the voice of affected stakeholders and include the recommendations of civil society organizations, people’s organizations, people’s groups, the industry, and other members of the private sector espousing the common interests of their members,” he said.