Win Gatchalian pushes excise tax suspension on diesel to benefit drivers

Senator Sherwin Gatchalian on Sunday said he is still pushing for the suspension of the excise tax on diesel to increase the take-home pay of public utility vehicle (PUV) drivers.

“Naiintindihan ko kung bakit hindi tinataasan ang pamasahe, pero para hindi mahirapan ang ating mga public utility drivers, dapat suspendihin (excise tax on diesel) pa rin para mas malaki ‘yung kanilang take-home pay,” Gatchalian told Super Radyo dzBB.

(I understand there is no fare hike, but to ease the burdens of our PUV drivers, the excise tax on diesel should still be suspended so their take-home pay will be higher.)

“Ang aking mungkahi ay sa diesel i-suspend. Yung gasolina, puwede natin pang-aralan pa. Sang-ayon ako na patuloy pag-aralan, patuloy i-monitor yung situation,” he added.

(My suggestion is to suspend the excise tax on diesel. As for gasoline, we can continue to study it further. I agree that we should keep studying and continue monitoring the situation.)

The lawmaker made the statement after President Ferdinand Marcos Jr. announced the removal of the excise tax on LPG and kerosene,a move aimed at easing the burden on households amid volatile global oil prices driven by tensions in the Middle East.

With this, Arnel Ty, Liquefied Petroleum Gas Marketers’ Association (LPGMA) founder, said the current cost of LPG should range from P1,455 to 1,567.

Meanwhile, Department of Finance Secretary Frederick Go said suspending excise taxes on gasoline and diesel would not provide meaningful relief following price increases in recent weeks.

Citing the Development Budget Coordination Committee (DBCC), Go said suspending excise taxes on diesel and gasoline would likely have little effect, as any price drop would be small and offset by market forces.

He added the government will continue giving targeted subsidies to sectors most affected by rising fuel prices.

Fuel prices are expected to decline in the coming week, with diesel possibly dropping to as low as P26 per liter and gasoline by P3.50 per liter.

The anticipated big-time rollback in pump prices was attributed to the “further unwinding of the war premium on prices because of the easing of tensions in the Middle East… as so far, the ceasefire is holding,” according to the industry source.
—RF, GMA News