Jeepney group urges tax suspension before oil hike

Jeepney drivers call for the temporary suspension of the implementation of excise tax on gasoline, days before the P4 per liter price hike in gasoline products.

In a radio interview, PISTON National President Mody Floranda urged President Ferdinand Marcos Jr. to issue an executive order to temporarily suspend the gasoline taxes.

“We are urging Marcos to issue an executive order suspending the implementation of high taxes on petroleum products, so that ordinary Filipinos with limited income can cope,” Floranda said.

In 2017, former President Rodrigo Duterte signed the Tax Reform for Acceleration and Inclusion (TRAIN) law, which increased the excise tax on gasoline and diesel from 2018 to 2020.

Under the TRAIN law, the Department of Finance said that the excise tax on oil products will only be suspended if global oil prices reach $80 per barrel.

The excise tax on diesel products is ₱6.00 per liter, while gasoline products are taxed at ₱10.00 per liter.

Transportation Secretary Vince Dizon said that the government has prepared at least P2.5 billion, which will be distributed in the form of a fuel subsidy.

Floranda welcomed the fuel subsidy; however, he said that this is still not enough because of the significant oil price hikes.

Information from oil players showed that gasoline prices may increase by P3.30 to P3.50 per liter, and kerosene by P4.50 to P4.70 per liter.

Diesel is expected to have the biggest increase, ranging from P5.00 to P5.20 per liter.

On 17 June, prices of gasoline products also increased by P1.80 per liter.

The increase in gasoline prices is attributed to the ongoing conflict between Middle Eastern countries, particularly Israel and Iran, as well as the continued weakening of the Philippine peso against the US dollar.