For a time, Ely Villena, a jeepney driver, could earn around P1,500 for a 10-hour shift on the road. But recent fuel price surges have slashed Villena’s income to a mere P600 to P800, forcing him to work up to 16 hours a day just to sustain his family.
Oil prices recently surged in October, reaching up to P70 per liter, due to potential supply disruptions from geopolitical tensions in the Middle East, where the Philippines imports a majority of its crude oil. Particularly, Saudi Arabia supplies half of the country’s oil supply, followed by the United Arab Emirates.
With the recent spike in oil prices, transport groups have once again called for the repeal of the Oil Deregulation Law and the removal of additional taxes on fuel to counter the rising costs of petroleum products.
Though the Department of Energy (DOE) has implemented price rollbacks for diesel, gasoline, and kerosene, the consecutive price increases render them useless as they hardly balance out the price hikes, Villena told the Collegian in an interview.
“Parang malamig na tubig lang na pambuhos doon sa nag-iinit. aas malaki yung itinaas na hindi naman kayang ibaba kaya ang nagiging sistema ay pataas nang pataas habang paliit nang paliit din ang kita namin,” Villena added.
For one, the total price increase for gasoline from June 25 to July 22 was reported at P5.34 per liter, while the price rollback amounted to only P4.17 per liter.
As a result of insufficient rollbacks in combating price hikes, prices saw a net increase of P8.75 per liter for gasoline and P6.55 per liter for diesel, but a net decrease of P3.10 per liter for kerosene, per DOE’s records from January to October this year.
The cutback on kerosene prices comes as a result of its low excise tax rate at P5 per liter—lower than gasoline at P10 per liter and diesel at P6 per liter. As a basic commodity primarily used for cooking, kerosene is taxed at a reduced rate to ease the financial burden of consumers.
The Value Added Tax (VAT), on the other hand, is applied to all sales of goods and services at a uniform rate of 12 percent based on the product's selling price.
By removing VAT and excise taxes, prices of oil products would decrease significantly even during periods of consecutive price hikes. Economic research group IBON Foundation also noted that the removal of these taxes would cushion 60 million Filipinos living on low incomes from rising costs of other goods and services that are directly impacted by surging oil prices.
PISTON noted that lower fuel prices would benefit not only drivers but also commuters, unlike provisional fare hikes that shift the burden onto commuters.
“Sa panig nga namin, yung kinikita nga namin hindi na sumasapat. Edi lalo pa yung manggagawa. Unawa naman namin na yung minimum na sweldo ng mga manggagawa ngayon pag pumunta ka sa palengke, wala ka nang pamasahe,” Villena added.
Aside from the campaign for the removal of fuel taxes, transport groups, including PISTON, have been calling for the repeal of the Oil Deregulation Law for nearly a decade, yet the government remains unresponsive to their appeals.
“The bulk of profits from blatant oil price manipulation is concentrated among major industry players, which rakes in billions daily from our hard-earned money,” PISTON National President Mody Floranda said in a statement.
The Oil Deregulation Law was introduced to lower restrictions in the oil market by reducing price control regulations and loosening trade restrictions. Since its enactment, the removal of importation restrictions has left the country vulnerable to fluctuations in the international oil market, leaving consumers to suffer under extremely high prices.
The law has allowed major local oil companies to monopolize the industry without transparency—enabling them to set their prices at exorbitant levels without any government intervention, said IBON.
Without a solid response from the administration, Villena and other PISTON members remain determined to push for the removal of these taxes and the repeal of the Oil Deregulation Law, viewing these as a more effective solution to rising fuel prices.
“Kung makamasa talaga ang ating gobyerno, unang-una talaga ay pag-aralan ang Oil Deregulation Law at habang pinag-aaralan, suspendihin muna ito,” Villena said. ●
