THE public can expect relief from rising fuel prices in terms of an excise tax suspension of P6 to P10 per liter within the next two weeks, House Committee on Public Accounts Chair Terry Ridon of Bicol Saro Party-list said Saturday.
Ridon said the House of Representatives is almost done with the bill authorizing President Ferdinand “Bongbong” Marcos Jr. to suspend or reduce oil excise taxes.
“We just need to wait for its approval,” Ridon stated. “Ridon told the Saturday Media Forum at Dapo Restaurant in Quezon City that the House is almost finished with the bill and hopefully it will be passed in the Senate by the end of next week.”
He said the proposed law would then be sent to the president, who has certified it as an urgent measure.
So, as much as P10 per liter can be shaved off the price of petroleum products once the excise taxes are suspended. So malaking bagay po ito and hopefully within the next two weeks ay makapag-benepisyo na po at makinabang ang ating mga kababayan dito po sa intervention po ito,” Ridon said.
He said the grant of authority to the president to suspend or reduce oil levies is unprecedented.
“Ang pagbigay po ng kapangyarihan sa ating Pangulo na bawasan, suspendihin, tanggalin ang excise taxes sa produktong petrolyo, ito po ay historic, unprecedented, hindi po nagawa kahit noong nagdaan. Kasi noong nagdaan meron pa hong tatlong buwang palugit para magtanggal, magsuspendi ng excise taxes sa produktong petrolyo,” Ridon added.
He was referring to the provision of the existing law allowing presidential intervention only if the three-month average of crude prices exceeds 80 dollars per barrel.
This waiting period was removed in the bill empowering the president to intervene, Ridon said.
“To be clear, what makes today’s intervention different is that as soon as the President declares a state of national emergency relating to petroleum prices, we don’t have to wait for three months to do an an average,” he said.
“So pagka inflated po ang prices, more than 80 dollars per barrel and there is a declaration of national emergency, immediately implementable ito,” he said.
He added that the forecast is that pump prices of oil products would go up to P100 or more per liter in the next two weeks, and that a P10 reduction would be a big relief that would benefit all sectors of the economy.
“Ngayon po, magkano na po ang presyo ng gasolina at diesel, P80 na, by next week, P90, P100 na. So yung pagbagsak ng presyo because of the suspension, pagbalik to P90, pagbalik sa P80 ay malaking benepisyo ‘yan across economic sectors, not just for transport sectors but for sa buong ekonomiya,” he stressed.
He explained that the President and House members realized the need for immediate intervention amid rising crude oil and fuel prices.
“Since the President and Congress see the issue with oil products, they have passed a proposal in Congress to suspend excise taxes when the President declares a state of national emergency,” he said.
He said soaring fuel prices affect not just the poor but the middle class and other economic classes as well.
The entire strata of economic sectors are confronting this crisis in oil prices. Hindi lang naman po ang mga mahihirap ang nahihirapan dito, kahit po ang middle class ay nahihirapan. What is most important today is for us to be able to provide immediate economic relief to our countrymen,” he said.
“So if it is something that can be undertaken in the soonest time, the government will do it and it is doing it today,” he said.
As for potential revenue losses on the part of the government, Ridon said, “Yung pong usapin ng revenues, di naman galing po sa excise taxes ang revenues, meron pa ho itong ibang pagkukunan.”
