Students, transport groups push back against oil price, fare hikes
by Ashley May Selen
In a bold act of solidarity, student commuters from One Taft Alliance, along with drivers and operators of Agoncillo-Guadalupe Jeepney Operators and Drivers Association (AGUA-JODA), barraged Petron Pedro Gil station last Sept. 19 to resist fare hikes and demand the removal of a decades-old oil deregulation policy.
Critical groups waged a longstanding plea to repeal the 1998 Downstream Oil Industry Deregulation Act or Republic Act 8479 that surrendered millions of Filipino commuters, drivers, and operators to multinational oil corporations and the instability of international conditions that lever up oil prices.
Francis Mendoza of Anakbayan Vito Cruz denounced the oil price increase that occurred in the country last July 2023, resulting in increased prices of other basic commodities which contain oil as a basic ingredient.
“Imbis na ilaan ang pondo ng bayan sa serbisyong pampubliko, nilalaan ito para sa modernisasyon ng AFP, NTF-ELCAC, confidential funds, at iba pa,” said Anakbayan national spokesperson Kate Almenzo.
One year into the provisional increase of Php 12 for the minimum jeepney fare, transport groups nationwide called for an increase of the fare to Php 14 to accommodate continuous fuel increases due to reductions in global supply.
Despite the calls, Land Transportation Franchising and Regulatory Board (LTFRB) dismissed the appeal, citing the fuel subsidies and dialogue with oil companies “suffice” as a safety net for the drivers.
Meanwhile, progressive economic think tank IBON Foundation dubbed the government’s fuel subsidy as a “bare minimum” that fails to account for the crude losses and daily earnings of the jeepney drivers.
Marcos Jr. ‘s administration allocated a Php 3 billion subsidy for public utility vehicle (PUV) drivers, from which traditional jeepney drivers are set to receive a one-time fuel subsidy of Php 6,500. IBON argued that the limited coverage of the subsidy can only make up for a mere two-week trip.
From July 11 to Sept. 8, IBON reported that diesel prices rose up by Php 15/liter, kerosene by Php 14.25/liter, and gasoline prices by Php 10.05/liter, which reduce the meager incomes of jeepney drivers and operators by Php 449 a day and drags up the prices of other basic goods and services that require oil.
In order to settle the ever-rising inflation, groups batted for the government to suspend excise tax and value-added tax (VAT) on petroleum products. Various groups concurring with this proposal pointed out that the prices of commodities will be immediately reduced if these taxes are removed.
However, Finance secretary Benjamin Diokno stated that the tax suspension is futile and advantageous only for the top 10% households consuming more than half of the country’s fuel supply. Diokno maintained support for the targeted subsidy for PUV drivers despite empirical evidence of its limited coverage.
The oil price hike debacle can be traced as far back as the Republic Act (RA) 8479, which removed government intervention amid instability of the international and domestic prices of oil and petroleum products. It sought to promote competitive market prices, encourage new participants in the country’s oil industry, and ensure optimum quality of oil and petroleum products.
Without a hold over international forces, the Philippine government is left to determine the welfare of millions of consumers by maintaining just the level of market prices of commodities. This, however, has long been wielded to multinational oil corporations when RA 8479 was signed into law.
Progressive groups adamantly push for amendments to the oil deregulation law such as the billion-peso reacquisition of the Petron Corporation and the removal or suspension of excise tax and VAT to oil and petroleum products. Both are perceived to have far-reaching benefits of regaining state control of oil prices and the toning-down of inflation, lest efforts to junk RA 8479 fail.
