Cut extra costs, traders urge gov’t

Business and oil industry leaders have pressed Malacañang to move beyond short-term pump relief and fix deeper logistics bottlenecks that are quietly driving up fuel and commodity prices.

Their message: unless “friction costs” across the supply chain are cut, any gains from lower global oil prices will barely be felt on the ground.

Instead of relying mainly on fuel subsidies or tax adjustments, the executives have urged the government to unclog the ports, relax restrictive truck bans, streamline permits, and rationalize local fees that add layers of cost from importation to last-mile delivery.

These expenses, they stressed, are ultimately passed on to consumers through higher transport costs and food prices.

The proposals were raised during back-to-back meetings convened by the Palace — one with 22 leaders from nine major business groups on 6 April, followed by talks with 25 executives representing 14 petroleum companies.

Acting Executive Secretary Ralph Recto said the discussions focused on pressure points: ensuring an uninterrupted fuel flow, maintaining adequate inventories, and attacking cost drivers that could trigger another round of price increase in basic goods.