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BBM calls for suspension of oil excise tax

Press Releases
21 October 2021

Partido Federal ng Pilipinas (PFP) standard-bearer Ferdinand 'Bongbong' Marcos, Jr. calls on Congress Wednesday (Oct. 20, 2021) to suspend the excise tax on oil products to negate the impact of runaway fuel prices particularly on the transport sector.

The presidential aspirant’s urgent call to suspend excise tax on fuel, prompted by the surging oil prices in the world market, may significantly slash gasoline prices by P10.00 per liter and diesel products by P6.00 per liter. 

Kerosene will likely go down by P5.00 per liter, and Liquified Petroleum Gas (LPG), a common fuel used by households for cooking, will be reduced by P3.00 per kilogram.

"Amending the oil deregulation law with the intent of addressing the issue of runaway oil prices will take some time.  This move to suspend the excise tax makes sense and will have an immediate positive impact on our people," Marcos said.

Marcos, who met with leaders of various Transport groups recently, lamented the impact rising fuel prices would have on the income of drivers and operators of public utility vehicles.

"We need to do something about this issue urgently because one sector that will be gravely affected has been suffering for the longest time in this pandemic. Transport workers and operators who depend on their daily operations for their livelihood are already in dire straits,"  Marcos added.

Transport groups who met with Marcos recently were: Pangkalahatang Sanggunian Manila and Suburbs Drivers Association (Pasang Masda); Federation of Jeepney Operators and Drivers Association of the Philippines (FEJODAP); Philippine Confederation of Drivers and Operators – Alliance of Concerned Transport Organization (PCDO-ACTO); Liga ng Transportasyon at Operators sa Pilipinas (LTOP); Alliance of Transport Operators and Drivers Association of the Philippines (ALTODAP); and Tiger in Asia.

Marcos also called on the DoE to study the restoration of the defunct Oil Price Stabilization Fund (OPSF) to cushion the economy from the inflationary effects of prolonged high oil prices.

"I implore the DoE to make a careful study on the possibility of bringing back the OPSF to cushion Filipinos from the impact of rising oil prices,"  Marcos said.

Signed into law in 1998, R.A. 8479 otherwise known as the Downstream Oil Industry Deregulation Act of 1998 aimed to liberalize and deregulate the oil industry and ensure a competitive market. 

However, after the full deregulation phase, prices of petroleum products continued their upward trend since the country remained a net importer of the product, and changes in global prices still dictate local pump prices.

"While we acknowledge that the price of oil is determined by free-market forces, the government should have mechanisms prepared to intervene when the need arises.  The OPSF will give us that ability and a serious consideration for its return should be studied,"  Marcos added.

The OPSF was set up in 1984 by former President Ferdinand Marcos to protect consumers from fluctuations in the prices of oil in the global market.  Under the program, oil companies contributed a portion of their sales to the OPSF to serve as a buffer fund. It was later on abandoned during the time of President Fidel Ramos.

"The pandemic has changed the energy landscape. Just like any country reeling from it, we should learn to adapt to this new environment.  I, for one, have always been a proponent of Renewable Energy and I believe that it will play a crucial role not only in our recovery but in the country's future as well," Marcos added.

The DoE also explained that the surge in oil prices was mainly due to a sudden increase in global demand as more countries starts opening their economies.  The DoE added that slow production and stockpiling for winter of some countries also jacked up demand.

Local oil prices have risen for eight straight weeks.  Pump prices were raised on Monday with gasoline increasing by P1.8 per liter, diesel and kerosene prices by P1.5 per liter, and P1.3 per liter respectively.

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 FILIPINO VERSION

BBM nanawagan ng suspensyon sa 'excise tax' sa krudo

Nanawagan si Partido Federal ng Pilipinas (PFP) standard-bearer Ferdinand 'Bongbong' Marcos, Jr. sa Kongreso nitong Miyerkoles na suspindihin ang ipinapataw na ‘excise tax’ sa inaangkat na krudo upang maibsan ang labis na pagtaas sa presyo ng gasolina na pumipilay sa kabuhayan ng taong-bayan.

Naniniwala si Marcos na ang pagsususpindi sa ‘excise tax’ sa langis ay isang napaka-importante at napapanahong hakbang upang maisalba ang mga mamamayan lalo na ang mga manggagawa sa transport sector matapos ang tuloy-tuloy na paglobo ng presyo ng langis sa international na merkado.

Ayon sa Presidential aspirant, maaari nitong mapababa ang presyo ng gasolina sa P10.00 piso kada litro habang P6.00 pesos ang mababawas sa presyo ng diesel kada litro.

Sa presyo ng kerosene, possible itong matapyasan ng P5.00 piso kada litro, habang ang Liquified Petroleum Gas (LPG), ang gamit sa pangaraw-araw na pagluluto ng Pinoy, ay mababawasan ng P3.00 kada kilo.

"Amending the oil deregulation law with the intent of addressing the issue of runaway oil prices will take some time. The move to suspend the excise tax makes sense and will have an immediate positive impact on our people," pahayag ni Marcos.

Labis na ikinabahala ni Marcos ang sunod-sunod na pagtaas sa presyo ng krudo na aniya’y sentro ng pakikipagtalastasan niya sa grupo ng mga tsuper, tricycle, driver at iba pang miyembro ng grupo sa transportasyon dahil sa bigat na pasanin sa kanilang kabuhayan.

"We need to do something about this issue urgently because one sector that will be gravely affected has been suffering for the longest time in this pandemic.  Transport workers and operators who depend on their daily operations for their livelihood is already in dire straits," pahayag ni Marcos, “Kawawa ang ating mga kapatid sa sektor ng transportasyon higit at sila ang direktang tinatamaan,” aniya.

Maibsan ang hirap sa walang habas na pagtaas ng presyo ng krudo, bukod pa sa patakaran para sa mga mananakay ang sentro ng usapin nang makipagpulong ang presidential aspirant sa iba’t ibang grupo sa transportasyon tulad ng Pangkalahatang Sanggunian Manila and Suburbs Drivers Association (Pasang Masda); Federation of Jeepney Operators and Drivers Association of the Philippines (FEJODAP); Philippine Confederation of Drivers and Operators – Alliance of Concerned Transport Organization (PCDO-ACTO); Liga ng Transportasyon at Operators sa Pilipinas (LTOP); Alliance of Transport Operators and Drivers Association of the Philippines (ALTODAP) at Tiger in Asia.

Hiniling naman ni Marcos sa DoE na pag-aralang mabuti ang posibilidad na maibalik ang ibinasurang Oil Price Stabilization Fund (OPSF) bilang sagot para maibsan ang hirap sa pagbulusok ng piso laban sa dolyar bunsod nang patuloy na pagtaas sa presyo ng langis sa merkado.

"I implore the DoE to make a careful study on the possibility of bringing back the OPSF to cushion Filipinos from the impact of rising oil prices," sambit ni Marcos.

Nabasura ang OPSF noong 1998, nang maisabatas ang R.A. 8479 o mas kilala bilang Downstream Oil Industry Deregulation Act of 1998 na naglalayon na makontrol ang presyo ng langis at maabatan ang pagsirit sa lokal na merkado.

Sa kabila nito, nanatiling nakasandal ang bansa bilang oil importer sa dikta ng international market.

"While we acknowledge that the price of oil is determined by free-market forces, the government should have mechanisms prepared to intervene when the need arises.  The OPSF will give us that ability and serious consideration for its return should be studied," paliwanag ni Marcos.

Naitatag ang OPSF noong 1984 sa administrasyon ng dating Pangulong Ferdinand Marcos bilang hakbang para maprotektahan ang mamamayan sa pagtaas ng presyo ng langis sa international na mercado. Sa ilalim ng naturang programa, maglalaan ang mga kompanya ng langis ng pondo sa OPSF mula sa kanilang kinita bilang ‘buffer fund’ na magagamit para hindi maibaon ng todo ang piso laban sa dolyar sa sandaling nagkaroon ng pagtaas sa presyo ng langis. Sa kasawiang-palad ibinasura ito noong panahon ni Pangulong Fidel Ramos.

"The pandemic has changed the energy landscape. Just like any country reeling from it, we should learn to adapt to this new environment.  I, for one, have always been a proponent of renewable energy and I believe that it will play a crucial role not only in our recovery but in the country's future as well," pahayag ni Marcos.

Ayon sa DoE, ang pagsirit sa presyo ng langis ay bunga ng mataas na pangangailangan ng supply sa buong mundo matapos ang pagbubukas ng ekonomiya ng mga bansa na hinagupit ng COVID-19 pandemic. Isa ring dahilan, ayon sa DoE ang mataas na demand dahil sa pagi-imbak ng mga bansa para sa nalalapit na tag-lamig sa kanilang lugar.

Sa nakalipas na walong sunod na linggo, tumaas ang presyo ng krudo at nitong Lunes nadagdagan ng P1.8 ang kada litro ng gasolina, habang tumaas ng P1.5 at P1.3 ang presyo ng diesel at kerosene. 

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