Manila: Senator Bam Aquino on Monday advocated for the passage of a measure aimed at reclassifying gasoline, diesel, and other petroleum products as basic necessities. This move would bring them under the government's price control mechanisms, offering relief to Filipinos amid increasing fuel costs.
According to Philippines News Agency, Aquino introduced Senate Bill No. 2011, which seeks to amend Republic Act No. 7581, known as the Price Act. The amendment would include petroleum products among the basic necessities eligible for a price ceiling during national emergencies. Additionally, the bill proposes extending the permissible period for price control on these products from 15 days to 30 days, ensuring the effectiveness of government interventions during prolonged price hikes.
Currently, only liquefied petroleum gas (LPG) and kerosene are classified as basic necessities. Aquino emphasized the urgency of the situation, stating that the Philippines is facing a fuel price crisis, with Filipino families feeling the impact. The rise in diesel and gasoline prices has led to increased transportation costs and higher prices for food and essential goods.
Aquino highlighted that workers, small business owners, farmers, and ordinary households across the nation are struggling financially. He indicated that the proposal is part of broader efforts to provide targeted assistance, support workers and small businesses, and maintain essential services during uncertain times.
In addition to advocating for price control, Aquino is urging for the suspension or elimination of the 12-percent value-added tax (VAT) on fuel products. He argues that such a measure could offer significant relief to Filipinos affected by rising pump prices due to the Middle East crisis. Revisiting the VAT on petroleum products, he noted, could have a substantial and direct impact on reducing fuel costs and alleviating consumer burdens, particularly for transport workers.
Aquino pointed out that removing the 12 percent VAT and excise tax could decrease the price of diesel and gasoline by nearly PHP20 per liter.
