Militant lawmakers on Wednesday warned of an “oil price explosion” brought by the second tranche of the Tax Reform for Acceleration and Inclusion Act, or TRAIN 2.
At a press briefing, Bayan Muna Rep. Carlos Isagani Zarate on Wednesday raised fear that the combined effects of oil price increases and rising inflation because of TRAIN 2 would be too much to bear for the poorest of the poor.
“Price explosion will definitely happen and we need to stop this,” Zarate said.
He urged his colleagues to act swiftly to pass House Bill No. 7653 to repeal TRAIN’s provision raising excise on fuel.
Unconstitutional
He also urged the Supreme Court to declare the TRAIN law unconstitutional.
“The painful beating the people took from the effects of TRAIN 1 is just a sample,” Zarate said.
“What our people face this year due to TRAIN 2 will be worse,” he said.
Militant lawmakers renewed calls to suspend the implementation of TRAIN.
According to Zarate, oil firms hiked gasoline prices to P1.40 per liter, diesel to P2.30 per liter and kerosene to P2 per liter due to an expected decline in supply.
TRAIN 2, he said, will add P2 more to fuel costs.
Dominoes
He projected that diesel price would increase by at least P4.30 per liter and gasoline, P3.40.
“Just imagine the domino effect,” he said.
The government’s projection of oil prices falling was off the mark because of oil-producing countries’ decision to cut supply.
“We might be seeing a situation similar to 2018 where inflation soared,” Zarate said.