Manila: Senators on Monday urged the government to prepare contingency measures as escalating tensions in the Middle East threaten to trigger another round of oil price hikes that could affect transport groups, farmers, and fisherfolk. Senator Raffy Tulfo emphasized the necessity for authorities to be ready with fuel subsidies to counter potential spikes in global oil prices, which could have widespread effects on public utility drivers and food producers.
According to Philippines News Agency, Tulfo highlighted concerns not only for overseas Filipino workers but also for the anticipated rise in oil prices. He called for the government to ensure that fuel subsidies are in place for transport groups, fisherfolk, and farmers. Tulfo mentioned that while no fresh allocation might be available this year, remaining funds from previous appropriations could still be utilized.
In a separate briefing, Senator Risa Hontiveros urged the Department of Energy to establish both urgent and long-term energy security measures. She expressed uncertainty about the duration of the Strait of Hormuz's closure and warned of its immediate impact on prices. Senator Francis Pangilinan also pressed for immediate safeguards, advocating for the rapid implementation of fuel subsidies for tricycle, jeep, and bus drivers, as well as for farmers and fishermen. Pangilinan further suggested considering the temporary suspension of excise tax on diesel and kerosene.
Meanwhile, Senator Sherwin Gatchalian called on the Land Transportation Regulatory and Franchising Board to prepare for the possible activation of the Pantawid Pasada program, a government fuel subsidy initiative for public utility drivers and operators. Gatchalian pointed out that the country imports nearly 99 percent of its oil and noted the availability of a continuing fund for the fuel subsidy, amounting to approximately PHP2.4 billion.
The senators referenced safeguards under the Tax Reform for Acceleration and Inclusion (TRAIN) law, advocating for changes in the fuel subsidy system. Senator Bam Aquino explained that under the TRAIN law's safeguards, excise tax collection on oil is automatically suspended when prices exceed USD80 per barrel. Gatchalian proposed revising the Pantawid Pasada program from a fixed USD80 threshold to a percentage-based formula for quicker aid distribution. Tulfo supported Gatchalian's proposal, emphasizing that the government should not delay action until prices reach USD80.
Local oil firms announced price hikes of PHP1.90 per liter for gasoline and PHP1.20 per liter for diesel, effective 6 a.m. on Tuesday.
