Oil Price

Oil price hikes

July 14, 2021 People's Tonight 1020 views

IF the prices of many basic commodities, including agricultural products, are sometimes beyond the reach of the poorest of the poor, blame it partly on oil price hikes.

Note that impoverished but manpower-exporting Philippines, like other developing countries throughout the globe, depends on oil imports, which are very expensive.

In the country, since January 2021, fuel prices per liter have already increased by P13 for gasoline, P10 for diesel, and P9 for kerosene, according to records.

This prompted Senator Imee R. Marcos. chair of the Senate committee on economic affairs, to call for a one-year suspension of the value-added tax (VAT) on oil products.

The highly-articulate Marcos said suspending the 12 percent VAT on oil products will provide relief to the beleaguered consumers other than just the country’s motorists.

She said: “Oil price hikes have a domino effect on agricultural products and other essentials. The higher cost will be passed on to the ordinary consumers who may still have a job.”

Workers, she said, have no choice but to deal with skyrocketing prices of electricity, food and other goods.

The 12 percent VAT on fuel products was imposed by the government in addition to the excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) law.

President Duterte signed the law imposing excise taxes of P2.50 per liter of diesel and P7 per liter of gasoline in December 2017.

Perish the thought of bringing down the prices of goods if the government refuses to suspend the 12 percent VAT on oil products as proposed by the lady senator from Ilocos Norte.