CITING the need or the government to heed public clamor, a top energy official hinted on a formula seen to instantly trim down the cost of fuel and electricity – without suspending excise and value-added tax collected from its sale and consumption.
In a statement, Energy Undersecretary for Special Concerns Benito Ranque said that suspending VAT and excise tax on fuel and electricity is no longer feasible as the process requires a tedious congressional deliberation, aside from the fact that such idea would adversely affect the government efforts to ease the adverse effects of the continuing pandemic scare.
Under his formula, Ranque said that the government may consider expanding the mechanics of the lifeline subsidy – P800 monthly subsidy for households consuming 100 kilowatts for the first 100 days in office of incoming President Ferdinand Marcos Jr.
However, the Energy officials said that it is still imperative for the next administration to come up with a long-term program that would cut the cost of electricity by as much as 50% in the next five to six years. When asked as to how he intends to deliver what many thought was a tall order, Ranque said that the government has to empower the small electric cooperatives.
“These electric cooperatives should be equipped with their own power plant, preferably renewable energy facilities. By doing so, we get to spare them from buying expensive electricity from the power generators and sell to their consumers,” an ecstatic Ranque said.
He also toyed on the idea of asking “compassion” from the big power generating companies to “relax” on its pricing since they have long been earning from their facility.
“We’ll ask energy companies which have been operating coal-fired power plants for a long time to relax on their rates. Anyway, nabawi na naman ang investment nila for those aging facilities. Out of compassion and corporate social responsibility, I have this feeling they’d consider it,” averred Ranque, who was earlier referred to by several business groups as the perfect fit for the top DOE post under the Marcos administration.
As for the fuels, Ranque said that prices of petroleum products may instantly be reduced by P3.26 per liter for gasoline and P1.40 per liter for diesel, provided the 19th Congress enacts a legislative measure to suspend the Bio Fuels Act of 2006, mandating the use of additives “which adds up an extra cost that is being passed on to the consumers.”
“Public transportation and small business will directly benefit from this measure. But that is just for the immediate concern,” says Ranque, who boasted of a well-researched long-term plan – which includes running after fuel smugglers, striking an equitable deal and forging partnership with oil-producing countries – in his drawing board.
