ECOP pushes return of oil windfall profit
He said recovered funds could be redirected to drivers and operators to ease their burden.
PRESIDENT Sergio Ortiz-Luis Jr.
PHOTO courtesy of PNA
Daily TribuneHe said recovered funds could be redirected to drivers and operators to ease their burden.
PRESIDENT Sergio Ortiz-Luis Jr.
PHOTO courtesy of PNA
Employers Confederation of the Philippines (ECOP) president Sergio Ortiz-Luis Jr. urged oil companies to return windfall profits from recent price hikes to the government, saying the funds could help cushion the impact on the transport sector.
He noted that oil firms may have gained windfall profits from recent price hikes, as existing inventories — typically lasting 30 to 60 days — were sold at higher prices.
“The companies should return it to the government, as the rapid rise in prices forces the government to spend billions to subsidize the transport sector and prevent fare increases,” Ortiz-Luis said.
He said recovered funds could be redirected to drivers and operators to ease their burden.
Likewise, Ortiz-Luis said the government should also use emergency powers under the Oil Deregulation Law to mitigate the effects of rising oil prices triggered by tensions between the United States and Iran.
He told reporters in a forum that the government can step in during crises to cushion sudden increases in petroleum prices.
Ortiz said other oil suppliers are willing to enter the Philippine market but face barriers, as the industry largely operates with minimal intervention.
He added that the Philippine Chamber of Commerce and Industry has submitted recommendations urging the government to consider offers from new oil players, some of which offer lower prices.
Ortiz-Luis also welcomed the suspension of excise and withholding taxes on oil products, but said these measures are insufficient.
Ortiz-Luis clarified that the Philippines does not import oil from Iran, though some supply routes pass through the Strait of Hormuz, while other sources remain unaffected by the conflict.