Farmers and other marginalized sectors urged President Duterte to issue an Executive Order (EO) directing the suspension of the VAT and excise tax on major oil products. This clamor is in response to never-ending oil price hikes. “Exorbitant oil prices and its domino effects are wringing the blood and sweat of Filipinos dry.”
Based on computation, removing the VAT and excise tax will slash P17/liter on gasoline, P12/liter on diesel, and P137/11-kg. tank on Liquefied Petroleum Gas or LPG. Temporarily removing these taxes collected by the government will immediately lower the retail prices of oil and give a much-needed economic relief for consumers who are badly hurting from the damaging effects of unreasonably high fuel prices, according to Kilusang Magbubukid ng Pilipinas (KMP) and partylist Anakpawis leader Rafael Mariano.
“Another big-time OPH is expected next Tuesday — an estimate of P11 to P12/liter increase. Local oil prices could reach up to P100/liter in no time if price hikes remain unabated. This dire situation warrants an executive order and decisive measures from the government to cushion the impact of price hikes,” Mariano said.
Likewise, Mariano said major oil companies must also have their profit margins slashed for the sake of grueling consumers. “Oil companies are back to profitability and are raking in billions as global oil prices keep rising. Whatever net loss oil companies had in 2020 due to pandemic lockdowns, they have already recouped in 2021,” Mariano said.
KMP noted that for 2021, Petron registered a P6.14-billion net income while earnings of Pilipinas Shell increased to P42.09-billion as of Q3 of last year. Chevron, on the other hand, opened 15 new gasoline stations in the Q4 of 2021. ###