The Manila Times
SEN. Imee Marcos on Sunday warned of food security problems if farmers and fishermen stop working because of high fuel costs. Marcos reiterated her call for the government to suspend the value-added tax (VAT) on petroleum products. She made the appeal to ease the burden of municipal fishermen and commercial fishing firms registered with the Bureau of Fisheries and Aquatic Resources (BFAR). Marcos said farmers and other agricultural producers would also benefit from the VAT suspension since they also use fuel to harvest their produce. “In the end, all of us will be affected. If they stop [farming and fishing], prices of food would go up,” she said in a statement. She said that not all sectors would be covered by a VAT suspension. “This is directed toward poor and vulnerable sectors to provide them some relief [from the oil crisis],” she said. Marcos said that almost all fishing villages, especially in General Santos City and Zamboanga, were affected by the oil crisis. “Most fisherfolks can’t venture anymore into the sea due to high diesel costs,” the senator said. “If VAT is temporarily removed, they will feel its immediate relief. This will be a huge help for them,” she said. Marcos earlier sought a law mandating the “unbundling” and disclosure of petroleum prices amid the unabated oil price hikes. The senator filed Senate Bill (SB) 2007 which aims at amending Republic Act (RA) 8479 or the Downstream Oil Industry Deregulation Act of 1998. The measure also seeks to establish a “rules-based pricing reference system” under the Department of Energy (DOE). She said RA 8479 was enacted to liberalize the downstream oil industry to promote competition, ensure a steady and sufficient supply of petroleum products, and encourage fair and efficient pricing. But the “deregulated framework has not sufficiently addressed the persistent lack of transparency in petroleum pricing,” she said. At present, pump prices are presented as a “single aggregated amount, without a clear and accessible breakdown of their undergoing components including international crude costs, refining expenses, distribution and marketing costs, taxes, and profit margins,” she said. “By requiring a clear and standardized breakdown of price components, the bill aims to enhance transparency, empower consumers to make informed decisions, and strengthen regulatory oversight,” Marcos said. “This system will provide indicative price bands anchored on objective factors, such as international benchmark prices and prevailing exchange rates,” she said. “While preserving the market-based nature of pricing under a deregulated regime, the mechanism promotes accountability and discourages unjustified price deviations,” Marcos said. She said the Middle East war has disrupted global energy markets, highlighting the vulnerability of petroleum-exporting countries such as the Philippines.
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