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Philippines: Consumer group wants buffer against oil price hikes
MANILA, Philippines — The government should start implementing measures to protect consumers as oil prices have climbed for seven consecutive weeks in step with global trends, a consumer group said yesterday.
Prices of gasoline are set to increase by P1.20 per liter, diesel prices by P1.05 per liter and kerosene by P0.65 per liter, oil firms said in separate advisories.
Gasoline prices have increased by P7.80 per liter, diesel by P10.20 per liter and kerosene by P9.10 per liter since the start of the year.
Laban Konsumer Inc. (LKI) said government should recommend measures that would cushion the inflationary impact of rising prices on commodities while closely monitoring global and local oil price movements.
“We call on the government to remain vigilant despite the lower inflation in January and implement measures such as temporary reduction of taxes on fuel products and approve contracts to mitigate the impact of consumer prices of higher fuel and power prices in the coming months,” LKI president Victorio Dimagiba said.
Among the measures proposed are the reinstatement of the oil price stabilization fund, regulating the oil industry, promotion of electric vehicles, suspension of value added tax (VAT) and excise taxes on fuel products and lifting of the increases in the suggested retail price of basic goods.
Dimagiba said high fuel prices could drive inflation higher from the January inflation of three percent. Higher prices of basic goods, he said, would impact heavily on the most vulnerable sectors like daily wage earners, public utility drivers, the elderly, persons with disability and ethnic minorities.
The consumer advocate said the government should also reconsider the buyback or renationalization of Petron and the buyback of the majority shares in Malampaya natural gas.
Dimagiba they are also pushing for a temporary price freeze on basic commodities, suspension of applications for fare hikes and the granting of fuel discount coupons to drivers and operators consuming 50 liters a week.
LKI has also proposed special tax audit on oil companies, traders and fuel importers to determine whether they have paid the correct taxes.
It has also proposed the inclusion of diesel and gasoline in the list of basic commodities, subject to price freeze or price control in times of calamity and disasters.
“Some of these concrete and reasonable proposals from consumers are doable and can be done, if only the regulators have the political will to protect consumers from these unabated oil price hikes,” Dimagiba said.
The group said the benchmark Dubai crude is projected to increase by 6.5 percent this year from last year.
Source: https://www.philstar.com/headlines/2022/02/15/2160841/consumer-group-wants-buffer-against-oil-price-hikes