In his bid to return to the House of Representatives, former LPGMA party-list Representative Arnel Ty has committed to advocating for a decrease in the prices of petroleum products in the country.
In the Bakit Ikaw: The DZRH Job Interview on Thursday, Ty discussed the need to repeal the excise tax imposed on gasoline and diesel, citing that it is one of the reasons behind the rising prices of petroleum products.
"Isa pa sa tingin ko na magpapababa pa ng presyo niyan is the removal of the Excise Tax dahil ‘yun din po ang aming gagawing introduction of the bill namin sa susunod na Kongreso is the repealing of the Excise Tax, hindi lang po sa LPG, but including the gasoline and diesel," said Ty.
"Yun po ang commitment namin dahil nakikita naman namin na hindi naman mababawasan ang koleksyon ng gobyerno dahil may VAT pa naman tayong 12% na kinokolekta diyan," he added.
From Ty's perspective, the public has been overburdened with taxes on petroleum. Furthermore, his group is advocating for stricter regulations on diesel and gasoline, highlighting the widespread issue of smuggling.
Ty also pointed to their efforts in the LPG sector, where, after 19 years of advocacy in Congress, they successfully regulated the industry and removed substandard tanks from the market.
"Ang amin pong ginawa noong 2021 dahil after 19 years of defending it in Congress, ‘yun pong ibalik sa regulasyon ang LPG industry," Ty stated.
"Naibalik na po ‘yan noong October 14, 2021 pero mayroon kasi sa batas na transition period of 3 years. So this year ang full implementation of the law and by full implanting of the law, may control na po ang gobyerno sa LPG industry," he added.
A strategic approach to the problems in the country
Ty argued that a comprehensive solution, including the removal of the Excise Tax, could address the country’s broader problems.
He cited data showing that jeepney and taxi drivers, who consume 30 to 40 liters of fuel a day, would benefit from an additional P7,000 to P9,000 in monthly income if the P6 excise tax on diesel and the P10 per liter gasoline tax were eliminated.
"Malaking bagay ‘yon para sa kanila at the same time, ‘yung mga flate ng bigas at ng gulay na galing sa probinsya, bababa rin po ‘yon. Kaya nga sabi natin, I think this is the best proposal na pwede naming isulong at ilaban sa Kongreso in the next Congresses ito pong pagtatanggal ng Excise Tax," he added.
Ultimately, he emphasized the importance of boosting the self-confidence of petroleum consumers, pointing out that this would provide them with additional income. Rather than giving them assistance, it's more valuable to help them gain income through their own hard work.
Oil smuggling issue
The former House member believes that the only way to control the issue is by regulating the industry, noting that anyone can enter the gasoline and diesel business without needing to obtain a permit from the Department of Energy (DOE).
He explained that the role of the DOE today is limited to monitoring, unlike in the LPG industry, where a license to operate is now required.
Furthermore, he pointed out that under the LPG Law, or RA 11592, regulations were established for the LPG industry, which now mandates businesses to secure an operating permit and register with the DOE before starting operations.
"Kung hindi po sila registered sa DOE, the DOE can give a notice to the local government unit na ipasara po ‘yon. As of now, pagdating sa diesel and gasoline wala pong ganong power ang DOE dahil de-regulated siya," said Ty.
"Kaya kailangan ibalik sa regulation so that ang pagi-issue ng license to operate, para ang mga tinatawag na maliliit na pinagpaparadahan ng mga maliliit na barko na nagpapaihi ay mamonitor talaga ng Department of Energy," he added.
Efforts to lower LPG prices
Ty pointed out that the key to sustaining proper pricing is through the full implementation of the LPG Law, which will take effect this year. Consumers will start to feel the impact, beginning this month and in the months ahead, as LPG prices are expected to stabilize due to the new law.
"Marami po kasing probisyon ang bagong batas na ‘yan na magkakaroon ng mga additional incentives ang ating mga consumers," Ty noted.
As an example, he pointed out the challenges in returning deposits. For example, if you purchase a tank and later wish to return it because you're not satisfied with the brand, it’s hard to get your deposit back.
Thanks to the new law, consumers now have the right to request a deposit refund and demand it from the brand owner. The brand owner cannot ask for a receipt, even if there isn't one.
Transparency and accountability in the government
Meanwhile, Ty emphasized that the LPGMA Partylist is committed to supporting transparency and accountability in the government. He further explained that, regarding fund allocation, all disbursements are managed by government agencies.
He further elaborated that their responsibility is to pass the funds to the relevant agencies that are authorized to manage the disbursement.
"Ang ginagawa na lang po namin, tinutulungan na lang namin ang aming mga constituencies na makalapit doon sa ahensyang ‘yon dahil ‘yun naman po talaga ang trabaho ng Congressman at hindi siya ang nagbibigay ng pondo sa mga nangangailangan," Ty underscored.
Ty served as a representative of the LPGMA Partylist from 2010 to 2019 in the lower house of Congress.
