DAVAO CITY — The oil firms have all stated that they will comply with the pricing changes. Shell Petroleum Corporation, Cleanfuel, Seaoil, PetroGazz, Chevron, and PTT Philippines have all upped their fuel prices, with others anticipated to follow suit.
This current wave of price hikes will see gasoline prices rise by an average of P20.80 per liter, diesel prices rise by P18.45 per liter, and kerosene prices rise by P16.04 per liter.
To soften the sharp swings in pump costs, the Department of Energy (DoE) is considering extending a subsidy for public utility vehicles (PUVs). It is unclear when the intervention will be implemented.
After eight weeks of constant increases in fuel prices, the agency forecasted that no hikes would occur in the next two months.
How much do jeepney drivers lose as a result of the relentless rise in oil prices?
This year, the price of diesel at the pump has already risen by P18.45 (US$0.36) a liter (including the most recent revisions on Oct. 26). This is the same as two people paying the P9 ($0.18) minimum fare. Given that jeepneys are only authorized to carry a maximum of 50% of their passengers, the impact on a driver’s income is significant. Only ten people can fit into a 20-passenger jeepney. Due to the increase in diesel prices this year, jeepneys can only carry a maximum of eight passengers for the lowest fare.
“Wala nay mabilin sa mong kinitaan matag adlaw kay mahurot ra og bayad para sa gasolina nga itubil sa jeep kay mahurot ra og bayad para sa gasolina nga itubil sa jeep kay mahurot ra og bayad,” says Jose Pantaleon, a 45-year-old jeepney driver from Davao City, as he laments, “Dili na gane ko halos mokaon og paniudto para di na makuhaan akong kita.”
Increasing the minimum fare, on the other hand, will just shift the burden of rising oil prices from drivers to commuters. Commuters, like jeepney drivers, are working-class people who have been severely harmed by the pandemic and are just scraping by.
What about the plan to bring back the Pantawid Pasada program, which was popular under Gloria Arroyo’s presidency? For one thing, the cash assistance will most likely be insufficient to make a dent in rising oil prices. According to media sources, the suggested monthly stipend ranges from P1,700 to P2,000 ($33.53 to $39.45). However, the amount of cash assistance is a secondary concern. The main argument is that the Pantawid Pasada just transfers the burden of rising oil prices to taxpayers, particularly drivers.
Holding oil companies and the government accountable
Meanwhile, oil companies who profit enormously from high pricing and arbitrary price spikes are exempt from liability. They should be the focus of policy efforts. One way is through efficient price regulation, which will prevent them from profiteering by adjusting prices every week.
Government officials must also be held accountable. People should put pressure on officials to repeal regressive and excessive gasoline taxes, such as the 12% value-added tax (VAT). This action will immediately lower gas costs, providing much-needed relief to jeepney drivers and the general population.
The Philippines has the highest VAT or VAT-like impositions rate in Southeast Asia, at 12 percent. Cambodia, Indonesia, Laos, Malaysia, Thailand, and Vietnam all levy a 10% tax, while Singapore levy a 7% tax. We also charge a higher rate than some of Asia’s most successful countries, such as Australia, Japan, and South Korea, which all charge 10%, and Taiwan, which only charges 5%.
While the Philippine government does not determine the price or change the price in the global oil market, it should abandon its defeatist attitude and claims of helplessness as Filipinos suffer from rising prices. The government may modify its tax policy on petroleum products directly and instantly, lowering costs not only for jeepney drivers and their families, but for the entire economy.
As a result, critics of the current administration frequently assert that the government may and must repeal Republic Act (RA) 8479, also known as the Oil Deregulation Law, in order to protect the public and the country from excessive pricing and arbitrary price spikes. Instead, policymakers must develop and execute a comprehensive regulatory framework for the downstream oil industry.
Holding oil companies and the government accountable
Meanwhile, oil companies who profit enormously from high pricing and arbitrary price spikes are exempt from liability. They should be the focus of policy efforts. One way is through efficient price regulation, which will prevent them from profiteering by adjusting prices every week.
Government officials must also be held accountable. People should put pressure on officials to repeal regressive and excessive gasoline taxes, such as the 12% value-added tax (VAT). This action will immediately lower gas costs, providing much-needed relief to jeepney drivers and the general population.
The Philippines has the highest VAT or VAT-like impositions rate in Southeast Asia, at 12 percent. Cambodia, Indonesia, Laos, Malaysia, Thailand, and Vietnam all levy a 10% tax, while Singapore levy a 7% tax. We also charge a higher rate than some of Asia’s most successful countries, such as Australia, Japan, and South Korea, which all charge 10%, and Taiwan, which only charges 5%.
While the Philippine government does not determine the price or change the price in the global oil market, it should abandon its defeatist attitude and claims of helplessness as Filipinos suffer from rising prices. The government may modify its tax policy on petroleum products directly and instantly, lowering costs not only for jeepney drivers and their families, but for the entire economy.
To safeguard the public and the country from excessive prices and arbitrary price hikes, the government can and must repeal Republic Act (RA) 8479, often known as the Oil Deregulation Law. Policymakers must instead establish and implement a comprehensive program to regulate the downstream oil industry.
