Govt moves to abate impact of oil price hikes

Measures are in place to minimize the impact of the ever increasing prices of oil and the Reformed VAT Law on the general public.  This was the assurance given by Secretary of Finance Gary B. Teves.

Teves said among the measures to cushion the impact  are the removal of the excise tax on diesel, kerosene  and bunker fuel oil and zero-rating the sale of power by geothermal, hydro and solar energy plants.  He also pointed out that an executive order reducing the import tariff on petroleum from 5% to 3% (except for LPG, which will remain at zero) will also take effect immediately upon the implementation of the Reformed VAT Law.

Teves said that while the government recognizes that the effects of high oil prices and the RVAT are painful but  allowing the fiscal position to further deteriorate and adversely affect the investment climate and exchange rate will cause more hardship in the  long-term.

Aside from the Department of Finance, other departments have also been directed to undertake measures which would mitigate the impact of the rising oil prices.

Department of Trade and Industry Secretary Peter  Favila   issued calls against profiteering and taking undue advantage  of  the  high  oil  prices in unnecessarily increasing prices of goods.  According to him, the DTI shall enforce the full measure of the law on unscrupulous traders and those taking undue advantage of the present oil situation.

The Department of Trade and Industry has been directed to closely monitor wet and supermarkets  to see irregular price movements. According to Regional Director Dominic Abad  DTI is working closely with the different local government units to activate and mobilize the local Price Coordinating Councils (LPCCs) and to continuously dialogue with various manufacturing and industry associations to persuade them to keep prices steady for as long as  possible.

So far, in Region 6, Abad reported that no price manipulations of prices have been seen and no indications of hoarding due to the ample supply noted.

On the other hand, the Department of Energy will start implementing the organized Bus Route Program first in Metro Manila.  It  is now starting to implement the Alternative Fuels Program like the use of coco-biodiesel, fuel ethanol, natural gas and LPG for transport.  The possibility of expanding lifeline rates will also be implemented in coordination with the Energy Regulatory Commission. (PIA6)