Bayan hits admin for still not lowering oil taxes amid new round of price hike
MANILA, Philippines — An activist group has called out President Ferdinand Marcos Jr.’s administration for still failing to reduce oil taxes amid a new round of price hikes for fuel products.
In a statement on Monday, Bagong Alyansang Makabayan (Bayan) secretary general Renato Reyes said that Marcos, during his 100 days, appears to have been reluctant to reduce oil taxes despite their repeated calls.
Diesel prices are expected to increase by P6.50 per liter starting Tuesday, pushing pump prices beyond P75 per liter in some areas. Gasoline and kerosene prices will rise by P1.20 and P3.50 per liter, respectively.
“In the past 100 days, Marcos Jr. refused to even reduce only the massive oil tax. Instead, the government imposed a fare hike which only shifted the burden on commuters,” Reyes said in Filipino.
“Targeted subsidies are also not enough to stop the negative effect of the oil price hike on the transportation sector and the whole economy,” he added.
READ: Oil firms announce hikes in fuel prices effective Tuesday
Article continues after this advertisementThe country has seen oil prices drop for several consecutive weeks recently, but it does not mean that oil prices are lower. Cumulatively — not including price adjustments on Tuesday — there has been a net increase of P14.85 per liter for gasoline, P29.4 per liter for diesel, and P24.10 per liter for kerosene for the whole year.
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Due to the oil prices increase, the government was forced to approve a fare price hike on public utility vehicles (PUVs), taxis, buses, and ride-hailing applications, which took effect last October 4.
Reyes also claimed that the government could have prevented the incoming massive oil price hike if only it had scrapped the deregulation law that allows oil companies to impose their prices.
The progressive group leader claimed that while oil prices are expected to increase due to the Organization of Petroleum Exporting Countries (OPEC+) decision to cut deep oil production, such an increase would only take effect in November, not in mid-October.
Besides, he claimed that the oil products being sold right now were bought at an earlier date.
“The incoming oil price hike is a quick reaction and speculation to the announcement that OPEC+ countries, including Saudi Arabia would cut production. Although the production cuts would take effect by November, the speculation pushed the prices upwards and it would immediately take effect over the pump prices at stations,” he said.
“The price increase on October 11 is tyrannical because oil companies purchased their inventory at a lower price, but they swiftly imposed any price hike on the world market. They can freely raise prices because of the deregulation,” he added.
Even before Marcos was elected President, Bayan and Reyes had been actively calling for the removal of oil taxes, particularly the excise tax brought by the Tax Reform for Acceleration and Inclusion (TRAIN) Law, and the value-added tax.
As early as late March, Bayan called for the suspension of oil taxes. They then asked candidates for the 2022 presidential race to unite toward the suspension of oil taxes.
Initially, Marcos agreed that there was a need to suspend excise taxes on oil to curb rising prices, but after winning in the 2022 polls, he said that his administration would focus on other ways to address the hikes — like providing targeted social aid.
