I AGREE with a number of proposed solutions on oil price hikes forwarded by some economists, political figures and civil groups to ease the worsening burden on our people, not just the transport sector, but all, poor and rich.
I find in particular Makabayan senatorial bet Atty. Neri Colmenares proposed solutions as right measures, i.e., the immediate repeal of VAT and suspension of excise taxes, unbundle the oil prices, repeal Oil Deregulation law, buy-back state-owned Petron, and establish National Petroleum Exchange Corporation.
Sonny Africa, Ibon executive director, extrapolating data from the DOE and DOF, says that in 2018 the government earned P292 million per day from Train excise taxes on oil products, and P5.8 million per day from VAT in the price of diesel or gas. It’s self-explanatory why the government cannot do away with these measures.
Thus, Neri’s proposed measures, if carried and done, would stop the retrogressive state policy on oil, and move towards state-controlled and regulated oil industry, considered so vital in our nation’s life, just like energy and water.
But with no foreseeable government action to curb the continuing oil price hikes, this is going to be a big challenge to new officials and leaders in the post May 2022 elections.
In the meantime, I believe the National Government can handle the impact of the suspension of Train excise taxes on oil products, and the VAT on the price of diesel and gas. They can do it on top of the recent declaration from the Department of Budget and Management P3 billion for fuel subsidy and discount programs which will be a big relief to those in the transport sector.
These measures together on roll, while working on a more strategic solution like Atty. Neri’s proposed solutions, to protect our citizens from fluctuations in the still import-dependent oil industry.
For the local government units (LGUs) and private groups, they can jointly initiate immediate indigenous, doable and tangible solutions to the unabated oil price hikes.
Among the solutions, the LGUs with DILG must ensure fair guidelines and efficient and bias-free implementation mechanics on the DBM declaration, prioritizing those in the bottom of the pyramid.
LGUs, together with the DLG, DA, DTI and representatives from Business chambers, should call on all food producers cooperatives and federations, and goods merchandizing wholesalers and retailers, in their respective jurisdiction, to come up with mutually beneficial consensus for fair prices adjustments utilizing all doable schemes, including price regulation monitoring and correction, so as to minimize the burden of the oil price hikes impact on consumers.
LGUs’ Local Development Councils can come up with mutually beneficial and realistic guidelines on price monitoring and regulation, and also organize some sort of local trading and marketing systems between producers and consumers.
LGUs and the private sector should also encourage minimal use of fuel-based energy, and slowly shift to green energy sources, like solar, micro-hydro, wind, biomass technologies, including few other local energy-saving inventions.
The LGUs can invest part of their Internal Revenue Allotment (IRA) or portion of its incoming bigger National Tax Allocation (NTA) under EO 138 and Mandanas-Garcia Supreme Court ruling, to develop alternative or green solutions, in the face of instability in our oil industry.
Still, I believe that the Neri proposals are not without basis, and must be pursued by the next set of national and local leaders.
I know it is not easy for these measures to see light in the present and even in the new leadership, but it is better to continue the collective push for these measures until they are given adequate attention in the next House and Senate and national executive leadership.
Meanwhile, a new generation of leaders who know by heart and mind the mass sentiments, their problems and needs, fears and anxieties, hopes and aspirations -- must continue to be nurtured in the womb of the present society.