Is President Marcos being fed the wrong information by his economic managers, resulting to the delay in the suspension of the excise tax on diesel and gasoline?

House Legislative Energy Action Development (LEAD) Council presiding officer, Marikina City 2nd district Rep. Miro Quimbo; and Deputy Speaker Bacolod City lone district Rep. Albee Benitez raised this concern Wednesday, April 15 as they pressured a Department of Finance (DOF) official for clarity on the matter.

During Wednesday's LEAD Council hearing at the House of Representatives, Quimbo asked DOF Undersecretary Karlo Adriano for an update on the status of fuel products liquefied petroleum gas (LPG) and kerosene.

It was last Monday when President Marcos announced the suspension of excise tax on LPG and kerosene only.

“We are ready with the implementing rules and regulations (IRR), once the EO (executive order) is out, we can release the IRRs within the day,” he said.

“Does that mean na sarado na ang pinto sa suspension ng excise taxes on diesel and gasoline?” asked Quimbo, to which Adriano replied, “No sir, hindi pa po (not yet).”

Adriano says the Development Budget Coordination Committee (DBCC) and Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) Committee are making a monthly assessment of the situation, and any decision would be based on such evaluation.

This didn't sit well with Quimbo, given that Filipinos have been grappling with elevated pump fuel prices since March, or when the economic fallout of the United States (US)-led attack on Iran started to be felt in the country.

“That’s too late, they should meet every week and make a weekly assessment,” a visibly frustrated Quimbo remarked.

“I think the President is being feed the wrong information!” the economist-solon later said in a raised voice.

Benitez echoed this concern, and said “if the information is wrong, the decision will be wrong.”

The deputy speaker from Negros Occidental asked the DOF official what became the basis for suspending excise taxes on LPG and kerosene, and not on diesel and gasoline.

Adriano answered by saying that LPG and kerosene were used mostly by “poorest of the poor” households.

In the case of diesel, he says 66.4 percent is consumed by the transport sectors, which includes households. Of the 66.4 percent, 85 percent is used by the top three “deciles” or classes of rich Filipinos.

As for gasoline, 40.1 percent of consumption is classified as “retail outlet", of which the rich accounts for 50 percent, he added.

In short, the DOF official was laying down the argument that a diesel and gasoline excise tax suspension would benefit the rich more than the poor.

Quimbo disagreed with Adriano and said, “Those are not the representations you present to us when we are considering the excise tax suspension bill.”

He said that while fuel price hikes are felt by the entire population, "The poor are more impacted than the rich.”

“Pagbayad ng fuel price increase, ‘yung mahirap wala nang pera, pero ‘yung bilyonariyo, marami pang ekstrang pera. Kaya, bayaan niyo nang makinabang yung mga mayayaman, pero mas maraming mahihirap ang makikinabang sa diesel at gasoline excise tax suspension,” he explained.

(Paying for the fuel price increase leaves the poor with nothing, while billionaires still have plenty of extra money. So let the wealthy benefit, but far more of the poor will gain from suspending the excise tax on diesel and gasoline.)

Benitez, Cagayan de Oro City 2nd district Rep. Rufus Rodriguez and Quezon City 3rd district Rep. Franz Pumaren confirmed Quimbo’s statement about previous representations made by executive officials before the enegy crisis council.

Rodriguez said concerned officials told the solons that the government could afford a suspension of excise taxes on all oil products.

Questioning Adriano’s economic class figures, Rodriguez said only 1.5 percent of Filipinos are rich, 45 percent belong to the middle class, while the rest are poor.

“A diesel and gasoline excise tax suspension will benefit mostly the poor,” he argued.

Diesel has an excise levy of P6 per liter, while gasoline has an excise tax of P10 per liter.