Goking appeals excise tax suspension to ease oil price hike

IN the search for relief from continuing increases in oil prices, Cagayan de Oro City Council’s trade and commerce chair Councilor George Goking has prompted to make an appeal for President Rodrigo Duterte to issue an executive order suspending the collection of the excise on fuel products.

Goking said the continuing rise in fuel prices resonates with many business owners and workers in the city.

“Oil prices up for 5 straight weeks already. It’s up for the President to issue such an order, ”said Goking.

Goking who is also now contemplating the filing of an ordinance at the Council that seeks to suspend the collection of excise on oil and oil products for a longer period.

“Workers in the fisheries and agriculture sectors, where daily incomes can be drastically shrunk and livelihood opportunities undercut by spiraling oil prices and inflation,” he said.

He said their plight represents the current realities that have prompted earlier the 36 agricultural organizations, led by Samahang Industriya ng Agrikultura (Sinag), to make also a collective appeal for Pres. Duterte to issue an order postponing the collection of the excise on fuel products.

Goking also believed that the President can issue such an order since the country remains under a state of emergency because of the COVID-19 pandemic.

“Consumers are facing higher prices of petroleum products as February kicks off,” according to Goking.

Earlier, in separate advisories, Caltex, Cleanfuel, Petro Gazz, Phoenix Petroleum, PTT Philippines, Seaoil, Shell, and Unioil increased both diesel and gasoline prices by P0.75 per liter starting Tuesday morning, this week.

Caltex, Seaoil, and Shell will also hike kerosene prices by P0.45 per liter.

With the price increase in the past four weeks, year-to-date adjustments in gasoline prices stood a net increase of P4.95 per liter; P7.20 per liter increment on diesel; and P6.75 per liter hike on kerosene, said Goking.

According to OilPrice.com, the uptrend in international price of oil is mainly due to geopolitical risk, particularly tensions between Russia and Ukraine.

The Department of Energy’s (DOE) oil monitor bulletin said supply disruptions amid recovering demand is fueling crude prices to go up.

Aside from the tension between Ukraine and Russia, the DOE also cited supply disruptions in Turkiye due to pipeline explosion that affects over 400,000 barrels a day of oil supply, the ongoing supply woes in Libya and Kazakhstan, and the rising concerns over the spare capacity of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to meet the increasing demand. (Ben Balce)