Sorsogon Governor Francis "Chiz" Escudero on Sunday suggested the revival of the Oil Price Stabilization Fund (OPSF) to prevent the ongoing increase in fuel prices as of late.
According to the governor, it is in everyone's interest to keep oil prices low to prevent a "domino effect" in the local market, where prices of commercial products soar, and so would minimum fare for public transportation and minimum salary for employees.
"Kabilang na 'yung pagbababa ng rate ng buwis, bakit hindi natin pag-aralan muli ang pagbabalik ng OPSF?" Escudero suggested. "Para may magamit tayong pera para pang-subsidiya sa mga kumpanya ng langis para hindi tumaas habang tumataas ang presyo sa pang-daigdigang merkado."
(In addition to decreasing the tax rate, why not study the revival of the OPSF? So we have the money to use on subsidies for oil companies to prevent price hikes while the oil prices in the world market are increasing.)
He also suggested having a "strategic petroleum reserve," where the country can store purchased oil overseas that can be released at a time when oil prices in the world market soar.
Various groups have called for an increase in minimum fares and wage hikes over the past week to cushion the impact of the soaring oil prices due to the Ukraine-Russia conflict.
A suspension of value-added tax, as well as excise tax, have also been brought up to reduce the impact of soaring oil prices in the world market.
Escudero said the Department of Finance (DOF) and Department of Energy (DOE) have the authority to lower the taxes imposed on oil.
"Nilagay na 'yan sa batas, kailangan lang nilang gamitin," said the governor. "Ngayon kapag gusto nilang babaan 'yung ibang uri pa ng buwis na pinapataw sa produktong petrolyo, mangangailangan pa ng panibagong batas."
(That is already in the law, they just need to use it. … Now if they want to reduce other kinds of taxes on other oil products, they need a new law.)
"Pero sa ngayon, kapag tumataas ng sobra ang presyo ng langis, kayang babaan ng DOE at DOF dahil meron nang mekanismo sa batas nung pinasa namin para gawin po 'yan."
(But for now, when oil prices surge, the DOE and DOF have the authority to reduce it because there is already an existing mechanism in the law for them to do it.)
