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DOES the
government have any plan to effectively deal with
worsening problems facing the country due to
skyrocketing oil prices? Sen. Mar Roxas II raised this
question on Wednesday, as he voiced concern over “a
brewing geopolitical crisis in the Middle East and other
oil-producing countries.”
In a
statement, Roxas noted that world oil prices are not
showing any sign of slowing down and will likely reach
unprecedented levels that may soon surge past $150 per
barrel.
“What’s
the plan? Can our government tell us what it intends to
do if oil prices went berserk at faster and higher
levels than at present?” he asked, adding that the
situation calls for “a comprehensive plan that
addresses our multifaceted problem, from foreign policy
down to relief for our local transport sector.” The
senator suggested that a firm consensus be now formed
between the private and public sectors on safety nets
for micro, small and medium-sized enterprises to ensure
production and employment in the coming months. He noted
that 70 percent of Filipinos are employed in SMEs, and a
slowdown in consumption as a result of high inflation
would have a major impact on job security and purchasing
power of these workers.
Roxas
complained that “the government cannot even give in to
the people’s clamor to remove the VAT on oil as an act
of conscience in these highly difficult times.” He added
that if that particular source of major economic relief
would not be considered, “what is the government’s plan
to help every Filipino family survive the present food
and oil crises?”
According to Roxas, prevailing tensions in the Middle
East continue to rise given Iran’s plan to impose
controls on shipping in the Persian Gulf and the Strait
of Hormuz if their country is attacked. The Strait of
Hormuz, a narrow water lane separating Iran from the
Arabian Peninsula, accounts for roughly 40 percent of
the world’s traded oil flows, noted Roxas.
He
earlier pushed for a six-month suspension on the
collection of VAT on oil products, vowing to revive his
proposal to suspend the 12-percent E-VAT on oil as soon
as Congress resumes session on July 28. He insists that
the money saved by consumers will be used to buy other
essential goods, thus making up for losses in VAT
revenues.
“Now,
more than ever, I appeal to the Executive branch and the
majority bloc in the Lower House to heed the people’s
clamor for immediate relief from high oil prices,” Roxas
said, as pump prices rose for the fourth consecutive
week last weekend with unleaded fuel now costing P59.46
per liter, diesel at P52.44/l, and an 11-kg tank of LPG
at P634.02. |
