MANILA, Philippines -- With world oil prices shooting up to record levels of more than $140 a barrel, the Arroyo administration must now come up with a “battle plan” to address this “assault” against the Filipinos’ purchasing power and livelihood.

“We are being assaulted by high oil prices. We’ll never see $50-a-barrel crude oil again within our lifetime. Is our government prepared to face this, or are they saying we are totally helpless?” he said in a press statement Saturday.

World oil prices have been steadily increasing due to demand pressures from India and China and to supply constrictions from oil-producing countries. Crude oil was around $60 a barrel in January 2007.

“Dapat may kongkretong plano na resulta ng malawakang konsultasyon sa lahat ng apektadong sector -- mula sa sektor ng transportasyon, sa mga may-ari ng maliliit na negosyo, hanggang sa ordinaryong mamimili (The government should have a concrete plan resulting from open and frank consultations with all affected sectors -- the transport sector, owners of small enterprises and the average consumer),” he added.

From his end, Roxas proposed reverting to a four-day workweek for government employees, exempting only frontline, health and security services. He said money from unproductive foreign trips should be transferred to much-needed relief measures, such as conditional cash transfers to affected workers, food-for-work public works programs, or a genuine food-for-school program.

The senator also called on the public and private sectors to look at free shuttle services to employees as non-wage support.

To help keep the economy afloat, the former investment banker proposed that the government not raise interest rates despite a high inflation rate. “If we hike interest rates, then our small and medium-scale enterprises—that employ 70% of the workforce—would be direly affected since they rely on credit to run their businesses,” he said.

Roxas explained that the 14-year-high inflation rate the country is experiencing now is not due to “overheating” due to internal economic activity, but because of the global oil and rice price shocks. Hiking interest rates at this time, he said, “means choking an already hyperventilating economy.”

And since the economy is driven largely by personal consumption, Roxas said the government should now seriously consider suspending the VAT on oil to give immediate relief to consumers.

The Liberal Party president again repeated his call for the suspension of the collection of the 12-percent value-added tax on oil products as a means to help Filipinos cope with the situation.

He said the administration’s insistence in collecting a windfall from VAT on oil amid the people’s financial distress was “unconscionable.” He said it is “highly insensitive” of the government to keep harping about its P18-billion windfall from the VAT on oil collections when the average consumer can’t even stretch his or her income to cover basic expenses.

Local oil companies have announced that the weekly oil price hikes will continue until August at the least. This weekend, the price per liter of diesel increased by P2 to P54.44, while unleaded gasoline rose by P1 to P60.46/L. This is the 18th pump price hike this year.

Roxas said the administration should not use the excuse that the current crises are due to external factors.

“That is already a given. Yet throughout the world, responsible governments are taking the lead in setting good examples and helping their constituents cope with high prices,” he said.