HAVING a lot of options to address the price increase on fuels, Sorsogon Governor Francis "Chiz" Escudero said there is no need for President Rodrigo Duterte to declare a state of economic emergency.
Escudero, who was in Bacolod City Tuesday, March 8, said a state of economic emergency is not relevant at this time as it will not give the president additional powers.
Escudero, who is seeking a senate comeback, said the president can pass a law through a special session in Congress giving the Department of Energy and Department of Finance the power to decrease the excise tax and value-added tax (VAT) on petroleum products.
Duterte also has the power to adjust the taxes that would lower the cost of petroleum products from P3 to P8 per liter or reimpose the Oil Price Stabilization Fund (OPSF) that was implemented during the time of former President Ferdinand Marcos Sr., he said.
OPSF is used by the government to subsidize oil companies to cushion the increase of fuels in the country so that prices of gasoline and diesel would be stable in the country.
“Once fuel price increases, prices of other commodities also increase (what) the government should do is put up Strategic Petroleum Reserve or stocking of petroleum products,” Escudero said.
“We will buy fuel when world prices are low and we will make it available (to the public) in case of price hike to maintain lower prices in the country. This kind of strategy is being practiced in other countries,” he added.
Moreover, the Sorsogon governor is in favor of the review of the Oil Deregulation Law, saying that “it is very clear that it failed to lower the prices of petroleum products in the country.”
Oil companies imposed a new huge increase Monday on prices of fuels at an average of P3.80 per liter for gasoline, P5.50 for diesel, and P4.10 per liter for kerosene.
For Abang Lingkod Party-list Representative Joseph Stephen Paduano, there is a need to suspend the excise tax temporarily.
“By next Congress the Oil Deregulation Law must be reviewed and OPSF must be created again to absorb the price increase," Paduano said.
Provincial Consultant Alfredo "Albee" Benitez, on the other hand, said the government has authorized giving subsidies to the transport sector.
"The government should accelerate support for that to cushion the impact of the increase. The earlier they give the subsidy the better," the former lawmaker added.