MANILA, Philippines — Sen. Joseph Victor Ejercito renewed his call for the immediate passage of a bill mandating the automatic suspension of excise taxes on petroleum products if the Dubai crude oil price exceeds $80 per barrel.
The senator made the appeal amid conflict in the Middle East involving the United States, Israel and Iran, which might lead to oil price hikes.
Industry players have warned of an oil price adjustment next week if the conflict in the Mideast continues following the bombing of Iran by Israel and the United States.
Under current law, excise taxes add 10 pesos per liter on gasoline, 6 pesos per liter on diesel and 3 pesos per liter on kerosene, as imposed under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
There were reports that local oil firms will implement another round of fuel price increases, marking the 10th straight week of diesel hikes.
Ejercito filed Senate Bill 5, which seeks to automatically suspend the imposition of excise tax on regular gasoline, unleaded premium gasoline and diesel fuel oil when the average Dubai crude oil price based on Mean of Platts Singapore reaches $80 per barrel.
In a statement, the Senate deputy majority leader said oil price hikes have a domino effect on food prices, public transportation fares and other prime commodities.
"It is clear that the first to feel the effect of oil price increase are the ordinary citizens — our [jeepney and bus] drivers, our farmers, small businesses, and each family which rely on everyday earnings," he said in Filipino.
“Our kababayans (fellow Filipinos) need a practical and immediate solution when faced with unforeseen events such as the recent developments in the Middle East that impact their daily lives and livelihood,” Ejercito said.
