PH needs long-term solutions amid mega oil price hikes — economist

The Philippines needs long-term solutions in addressing the effects of massive fuel price hikes, according to an economic expert.

Speaking to Super Radyo dzBB on Sunday, economist Alvin Ang said the suspension or reduction of excise tax in petroleum products could be a good temporary solution to alleviate the price hikes but is not enough.

“Kahit may ganun, hindi siya sustainable dahil hanggang kailan? Pwede pansamantala siguro. ‘Yun pwede pamsamantala, isang buwan,” Ang said.

(Even if we have that, it isn’t sustainable because we don’t know how long the conflict will be. Maybe it could work as a temporary solution, maybe for about a month.)

“Hindi ito bukas tapos na ang problema. Ang epekto ay medyo malaki sa atin na hindi madaling matanggal. Kakalat pa 'yan sa iba pang produkto na gumagamit ng langis,” he added.

(This problem will not end by tomorrow. It will have a significant impact, and it is not easy to address it. It will also spread to other products that use oil.)

Senate leaders earlier said the upper chamber intends to pass the bill granting President Ferdinand Marcos Jr. emergency powers to suspend or cut the fuel excise taxes amid the conflict in the Middle East by next week.

Ang suggested that countries in the Association of Southeast Asian Nations (ASEAN) release some of their reserve fuel to help struggling nations as a symbolic gesture of unity.

“Dito naman sa Southeast Asia, may mga kapitbahay naman tayong may langis. Kaya lang, lahat 'yan strategic reserves nila. Siguro, pwedeng ASEAN. Tutal tayo ang chair ng ASEAN. Kahit man lang a few percent na i-release sa ASEAN, parang part ng unity ng lugar natin,” he said.

(Here in Southeast Asia, we also have neighbors that have oil. The problem is that it is part of their strategic reserves. Maybe this is something ASEAN could address. After all, we are the current chair of ASEAN. Maybe they could release at least a few percent to ASEAN, as a sign of unity in our region.)

Another round of massive oil price hikes are expected to be implemented next week, with diesel projected to rise by P19 to P22 per liter and gasoline by P12 to P16 per liter.

The conflict in the Middle East escalated after the United States and Israel launched coordinated attacks on Iran on February 28, causing consecutive increases in fuel prices. —RF, GMA Integrated News