Business leader calls for suspension of taxes on fuel products
ZAMBOANGA CITY (MindaNews / 23 March) – The continuing rise in global oil prices due to geopolitical tensions in the Middle East and its impact on the local economy and vulnerable sectors calls for tax relief and policy review, a business leader said.
In an interview, Pedro Rufo Soliven, regional governor of Philippine Chamber of Commerce Inc. for Western Mindanao, cited the renewed calls to suspend excise taxes and value-added tax on fuel products.
Soliven said suspending these taxes “could provide immediate relief to consumers and businesses struggling with rising costs.”
He, however, noted that there are those in government who caution that these taxes are also a significant source of government revenue, making any suspension a complex policy decision.
He said lawmakers and stakeholders are also pushing for a review of existing mechanisms such as the oil price stabilization fund and the oil deregulation law, adding these may need to be revisited to ensure they remain responsive to current global conditions and protect consumers from extreme price volatility.
Particular attention is being given to the fishing industry which is among the hardest hit by fuel price hikes, he said.
Soliven also emphasized the need to strictly monitor supply chains and logistics costs to prevent excessive price markups and ensure that increases remain justified.
Soliven, private sector representative to the Regional Development Council 9, noted the successive fuel price increases have been caused by geopolitical developments that have tightened global supply and created uncertainty in energy markets.
“This is the time for us to push a more independent foreign policy as a non-aligned independent state,” he said, citing the link between geopolitics and energy security.
“As oil prices remain volatile, the coming months are expected to test the resilience of both the economy and policy frameworks, with the government balancing immediate relief efforts against long-term fiscal and strategic considerations,” he said.
In response, the government is encouraging energy conservation measures and urging sectors to “make necessary adjustments to mitigate the impact,” he said.
In an interview, local businessman Oliver Ong, who manages three Petron Gas Stations here said, “The Middle East war brought so much uncertainty and tightens oil supply that makes the oil market jittery and drive prices up. Let’s pray the war in the Middle East will end soon or at the very least, the Gulf States can find another safe route to export their oil.”
Ong mentioned that he himself is not happy that prices are going up. “The higher the prices, the smaller our margins and the demand of more cash flow requirements, and not to mention the hardship and sufferings by all of us.”
“The Strait of Hormuz is closed and oil tankers cannot get out of the Gulf. Twenty percent of the world’s oil requirements passes through Hormuz. Unless the war stops, fuel prices will keep going up,” he said.
“This is all thanks to (US President Donald) Trump and (Israel President Benjamin) Netanyahu,” said Fatmawati Salapuddin, former commissioner of the National Commission on Muslim Filipinos Commission.
Local officials like Mayor Khymer Adan Olaso and Councilor Mel Sadain acknowledged that the rising cost of fuel is beginning to ripple across industries, affecting transportation, food production, and basic commodities. (Frencie L. Carreon/MindaNews)
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