Senator Aquino proposes classifying gasoline and diesel as basic necessities

Senator Bam Aquino’s filed Senate Bill No. 2011 seeking to classify gasoline, diesel, and other petroleum products as basic necessities under Republic Act No. 7581 or the Price Act.

Aquino said this will allow the government to implement price ceilings during national emergencies.

Currently, only liquefied petroleum gas (LPG) and kerosene are considered basic necessities, while gasoline, diesel, and other petroleum products are not covered by price control mechanisms.

“The Philippines is in the midst of a fuel price crisis, and Filipino families are feeling the strain. Rising diesel and gasoline prices have pushed up transportation costs, food prices, and the cost of basic goods,” Aquino said.

“Across the country, workers, small business owners, farmers, and ordinary households are struggling to make ends meet,” he added.

Aside from the price control expansion, the other highlights of Aquino's proposal include:

• Extended duration: Increasing the allowable period for price controls from 15 to 30 days.

• VAT suspension: A call to remove the 12-percent VAT on fuel, which could reduce prices by nearly P20 per liter.

“This proposal complements broader efforts to deliver targeted assistance, support workers and small businesses, and ensure the continuity of essential services during this period of uncertainty,” Aquino said.

He also emphasized the effect of the removal of VAT and the excise tax on the prices of petroleum products.

"Sa kasalukuyang presyo ng diesel ngayon na P124 kada litro, kapag inalis natin ang 12 porsyentong VAT at excise tax, bababa ang presyo nito ng halos bente pesos kada litro. Malaking tulong ito sa mga Pilipino," he said.

Aquino also urged the Department of Energy and economic managers to study these reforms as an immediate response to the ongoing oil crisis and its impact on transportation and basic goods.

"Sa kasalukuyang presyo ng diesel ngayon na P124 kada litro, kapag inalis natin ang 12 porsyentong VAT at excise tax, bababa ang presyo nito ng halos bente pesos kada litro. Malaking tulong ito sa mga Pilipino," he said.

He called on the Department of Energy and economic managers, including the Department of Finance and the Department of Economy, Planning, and Development (DEPDEV), to seriously study VAT reforms on fuel and consider them as part of the government’s immediate response to the oil crisis.

“Magandang mapag-usapan, kasi yung taumbayan, naghahanap ng agarang tulong. And the excise tax is one, but VAT actually will be a bigger subtraction in the pump price kung masuspinde natin ito,” he said during the Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) Committee hearing.

Aquino also co-authored and co-sponsored in the Senate the recently enacted Republic Act No. 12316, which grants the President emergency powers to suspend or reduce excise taxes on petroleum products.

If adopted, the measure could lower gasoline and diesel prices by P10 and P6 per liter, respectively.

It could also reduce the prices of liquefied petroleum gas and kerosene by P3 per kilogram and P5 per liter, respectively.

-Paraluman News