The peso’s drop to a “historic low” of P60.30 to the almighty dollar brings to mind a time when it was just P2 to $1, which my parents used to sigh about when the peso dropped to P20-something.
Higher inflation is to be dreaded, to be sure, but the danger that hangs over our heads with the Iran war is perhaps more deadly than the gasoline and groceries we may not be able to soon afford.
External pressures have caused the peso to weaken and the Filipino people to feel the pain in their wallets. There is, as well, the unspoken anxiety of families over their loved ones working in the Middle East, even though many of the overseas workers remain unworried about their situation as they claim there has been no call to repatriate.
Still, there being no imminent danger at this point does not remove the ultimate risk of this great head-butt between Iran and the United States with Israel. It seems no one is willing to budge, with US President Donald Trump determined to prove his decision right in spite of the economic domino effect on the world.
Hereabouts, the tension lies in the seemingly blasé reaction of our government to the fuel oil crisis. Malacañang, in fact, has been steadfast in its pronouncement that “there is no oil crisis in the Philippines.” There is, however, a “crisis committee.”
If the purpose is to stem possible pandemonium, perhaps the better approach would be a solid reassurance that the Marcos government knows what it is doing.
Fuel subsidies are a temporary measure that benefits the transport sector, yes, but private citizens who must now contend with P120 per liter diesel and P100 for gasoline are adamant that something be done, immediately, to ease the expected surge in the cost of living.
A trip to Makati City from Quezon City takes about three liters of gas each way, making it a P600 daily trek, in a week that’s P3,000 and a month P12,000, excluding tolls and side trips.
While the country may be assured there is an “adequate fuel inventory,” as the Department of Energy has said, this so-called “price disruption” is enough to bother people who see no salary increases on the horizon, no additional transport allowances, or cash-filled suitcases in their spare residences.
Also, the sheer uncertainty of the Iran War leaves us with no definite end to the problems to look forward to.
A crisis committee (which some note has no workers’ representation, by the way) may just end up being broilers for discussion with little action, and perhaps those plans to hunt for new oil suppliers may yield sources, though said sources may also be looking at shielding their own foreseen shortages.
What about suspending the fuel excise tax? How long does the President need to study it? The Senate has already passed a bill suspending the tax, which is currently capped at P6 per liter for diesel and P10 per liter for gasoline. It will take another month for a suspension to take effect if the measure is approved, but at this point, the recommendations of both the Budget and Energy departments are needed for Malacañang to make a decision.
The clock is ticking, fuel prices are rising, and our patience is thinning.
It is not just prices, but the whole supply issue we are not sure about. It is not just proactive action, but basic empathy that we need. Going around to check on transport hubs to let us know how it is on a daily basis is not enough for someone who drives or rides to work every day and, on top of that, must manage their finances for the rising costs of food and other needs.