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COULD
the P50 per liter gasoline be far behind? Just on
Saturday, Chevron Philippines Inc., Petron Corp.,
Pilipinas Shell Petroleum Corp., Total (Philippines)
Corp. and Unioil Petroleum Philippines Inc. increased
their prices by 50 centavos for a total adjustment of
P2.50 per liter, inclusive of the 12-percent value-added
tax.
But, at
the same time, Petron, Shell and Total have cut the
price of liquefied petroleum gas (LPG) by 50 centavos
per kilo to reflect the drop in the international
contract price of cooking gas.
The
almost weekly increases in pump prices of fuel and other
petroleum products should persuade President Arroyo to
temporarily suspend the 12-percent value-added tax (VAT)
on oil, according to Sen. Mar Roxas II.
“The
people’s purchasing power continues to be eroded by
calibrated increases in the pump prices of gasoline,
diesel and kerosene,” said Roxas, the Senate’s trade and
commerce committee chairman.
He noted
the latest fuel-price adjustments raised pump prices of
premium unleaded gasoline to as high as P48.15 per
liter, diesel to P40.50 a liter and kerosene to P46.30
a liter. “Even if oil prices are increased in
incremental amounts, the net effect is still painful to
consumers and the transport sector.”
Roxas
was confident the passage of a bill for the suspension
of the VAT on oil is assured once the administration
starts backing the proposal.
Earlier,
a source said consumers should brace for more increases
until the end of the month because the oil companies
still have to recoup at least P1 to P1.50 to fully
reflect the increase in world oil prices. He noted that
Dubai crude is averaging $96.62 per barrel this month
from $90.02 per barrel.
Roxas
warned of possible civil and political unrest, as had
already happened and is happening in other Third-World
countries. “Pressure is building up in our society as
more households struggle to make ends meet given the
soaring prices and stagnant incomes. A temporary
suspension of the VAT on oil will provide enormous
relief to the people.”
Roxas
has been pushing for a six-month suspension of the
12-percent VAT on oil, as embodied in Senate Bill 1962,
but Mrs. Arroyo’s economic team led by Finance Secretary
Margarito Teves rejected the Roxas proposal. They
claimed it would wreak havoc on the goal of a balanced
budget that, a political observer said, seems to be an
obsession with Mrs. Arroyo.
But with
Filipino and foreign economists agreeing that a balanced
budget this year sacrifices more social and health
services to the people, Roxas said the Arroyo government
is now being “forced to forgo this façade of a balanced
budget” given the high cost of rice the administration
is importing.
“I urge
the President’s economic managers to agree to the
suspension of the 12-percent VAT on oil.” Roxas raised
the possibility the Arroyo administration could even
open up discussions between Malacañang and Congress on
whether the 12-percent VAT on oil should be lowered,
instead of a complete suspension.
Roxas
recalled that in a previous hearing of the trade and
commerce committee, Sen. Juan Ponce Enrile said he was
open to a lowering of the VAT on oil given the soaring
prices in the world market. “We need the same kind of
flexibility and openness on the part of the President
and her economic team,” said Roxas. |
