AFTER SEEING the Philippine Congress fast track the approval of a legislative bill that would somehow ease the fuel price shock, President Ferdinand Marcos Jr. took an awkward stand that shocked the nation in distress.
Marcos isn’t bent on using the emergency powers that would allow him to suspend — or at least significantly slash the price of fuel.
In a news article which appeared on the website of the state media, Marcos said that the possible suspension of excise tax on oil products would depend on global price movements amid uncertainties stemming from tensions in the Middle East.
According to the President, the government is carefully studying the situation before deciding on any intervention, even as he noted that exercising the power to suspend excise tax requires a thorough assessment of multiple factors.
“That depends. There are so many factors to consider. It’s a very complicated calculation. We will see. It depends on the trends. We have to watch the trends on oil prices. We will just have to look. It’s very hard to say because it’s all speculation,” Marcos was quoted as saying in the fix of English and Tagalog.
Marcos said global developments play a significant role in determining domestic fuel prices, adding that uncertainties in the duration and impact of the ongoing conflict in the Gulf region make it difficult to predict price movements.
He said the government is closely monitoring key global supply routes, including major oil transit points that could influence supply and pricing.
“We don’t know how long this will last for. We don’t know what the effects are. We don’t know what will happen at the Strait of Hormuz,” he added.
“Right now, we are just adjusting to the situation. When the situation calls for it, maybe we will see when to exercise that power and by how much.”
Marcos however clarified that the government is ready to act, should conditions warrant intervention.
He noted that to date, there is no immediate cause for alarm since the supply of petroleum products remains stable, despite information on a rapidly depleting buffer stock.
“We don’t have a problem sa (on) supply, with petroleum products, including fertilizer for the farmers. That’s our main concern,” Marcos said. “So far, we’ve been able to keep everything at normal levels. Everything is normal. No need to worry.”
Both the House of Representatives and the Senate have approved bills granting the President authority to suspend or reduce the excise tax on petroleum products to mitigate the impact of rising crude oil prices.
The Senate version allows for the suspension or reduction of the excise tax on fuel when the average price of Dubai crude oil reaches or exceeds $80 per barrel for one month, while the House version requires the President to declare a state of national emergency to justify the suspension or reduction.
