Philippine Government Sticks to Fuel Tax, Offers Aid to Drivers and Farmers

The Department of Energy (DOE) declined calls to suspend VAT and excise on petroleum products to address fuel price surge due to the Israel-Iran conflict. DOE Officer in Charge Sharon Garin stated that any tax changes require congressional action as they are imposed by law. Suspending taxes could impact public services by forgoing estimated revenues of P300 billion, used for infrastructure and health services.

Republic Act No. 10963 allows only the suspension of fuel tax increases, not the taxes themselves. The DOE is focusing on fuel subsidies as immediate relief, with a P2.5-billion fund for PUV drivers and operators, and an additional P600 million for farmers and fisherfolk.

Oil companies will implement price increases on a staggered basis to help families plan fuel consumption. The dip in global oil prices to $69 a barrel offers some relief, following US President Trump's ceasefire announcement between Iran and Israel.

Government agencies are preparing contingency plans for a potential worsening crisis, including alternative oil sources from non-Opec countries like the US, Canada, and Brazil. The Philippines has sufficient reserves and contingency plans in place for any worst-case scenario.

According to the source: Inquirer.net.