By Marielle C. Lucenio
SENATOR Sherwin T. Gatchalian, who chairs his chamber’s energy committee, said on Tuesday that giving the government the power to control fuel prices is “dangerous,” and instead proposed the permanent implementation of fuel subsidies for jeepney drivers.
“Time and time again, (we have seen) that the government is the worst operator. When you put businesses in the hands of the government, corruption will ensue,” Mr. Gatchalian told BusinessWorld by phone call.
Retail fuel prices rose for an eighth consecutive week on Tuesday.
Groups representing consumer and rural interests have urged legislators to give back to the government the power to control fuel prices, which would require the repeal of the Downstream Oil Industry Deregulation Act of 1998. The law gave oil companies the power to set their own market prices to increase competition in the fuel market.
Mr. Gatchalian said measures such as the suspension of the excise tax on fuel, which was resorted to by Thailand, will hurt the economy by cutting off a source of government revenue.
“The country earned around P131 billion in excise taxes in 2020, and it is projected to increase over time,” he said.
Instead, he said, the Land Transportation Franchising and Regulatory Board (LTFRB) must make the fuel subsidy program for jeepney drivers permanent. The program is known as Pantawid Pasada.
“I would rather institutionalize the program down to the tricycle drivers as it is supposed to be a shock absorber against increasing oil prices,” he said.
BusinessWorld asked the LTFRB to comment, but it had not replied at the deadline.
On Tuesday, petroleum product prices increased for an eighth consecutive week, with the price raised P0.80 per liter for gasoline; P0.65 for diesel; and P0.45 for kerosene.
Since the start of the year, fuel prices have increased by P8.75 per liter for gasoline; P10.85 for diesel; and P9.55 for kerosene.
