Transport group PISTON has called for the suspension of excise tax and value-added tax (VAT) on fuel products, saying the current subsidy is insufficient.

In a DZBB interview on Saturday, 7 March, PISTON national president Mody Floranda noted that fuel prices have been continuously rising since January, even before tensions in the Middle East. As prices surged to P19 per liter on Tuesday, he said it would impose a significant burden on drivers and operators.

He emphasized the need for the government to issue an executive order from the Office of the President to suspend excise tax and VAT.

“The fuel subsidy loses its purpose if petroleum prices continue to rise. For example, before, they gave P6,500, but it could only be consumed within three to four days. After that, it’s gone,” he explained in Filipino.

“What we are asking from the government is that instead of a fuel subsidy, which really ends up becoming a source of conflict among drivers and operators, the government should suspend the excise tax and VAT on petroleum products so that it’s not just one sector that benefits, but all of our citizens,” he added.

Floranda also highlighted problems with the current subsidy, which is distributed through cards presented at gasoline stations.

“Many cardholders go to gas stations only to be told that their cards have no balance, and they are sent back and forth to the LTFRB. Others end up in conflicts with operators because the latter use the expenses for spare parts as an excuse. That’s why the guidelines are really unclear,” Floranda narrated.

He said a suspension of excise tax and VAT would better help drivers, noting that after 12 to 16 hours of work, drivers typically take home only P500 for their families.

Since the 2023 price hikes, Floranda calculated that fuel prices have increased by almost P36, resulting in nearly P1,100 in direct losses from drivers’ earnings.

“If we look at it, within 25 days of operating trips, drivers lose as much as P24,000 per month in direct income,” he added, highlighting that excise tax and VAT should be removed “to help supplement the small income of drivers to meet their family’s needs.”