LIST: Bayanihan 3, and other potential legislative actions as PH grapples with fuel crisis

MANILA, Philippines – President Ferdinand Marcos Jr. recently signed into law a proposal that gives him the authority to suspend or reduce excise tax on fuel products.

He has yet to exercise those powers.

In Congress, lawmakers are filing bills and eyeing more hearings to determine what legislative action can sufficiently address the national energy emergency in the Philippines, triggered by the impact of the Middle East crisis in the country.

Bayanihan 3

During the COVID-19 pandemic, Congress passed two Bayanihan packages aimed at addressing the health and economic crises. The laws allocated funding for the hiring of additional health workers, and provided short-term economic relief for small businesses, subsidies to poor families, and aid for the transportation and tourism sectors, among others.

Senator Loren Legarda has said she will file a Bayanihan 3 bill to craft a government framework addressing the crisis.

In the House of Representatives, lawmakers are set to hold joint committee hearings beginning April 8 to come up with a “comprehensive legislative response.” Ways and means chairman Miro Quimbo said on March 31 that the primary goal is to “hammer out” a Bayanihan package.

The Marikina congressman added that the bill seeks to iron out details of short-term relief to the most affected sectors, and long-term plans to ensure a resilient Philippines in case of another crisis in the future.

Among the topics for discussion in the hearings are how much money is available, which funds can be realigned, who will be given aid, and what distribution system is available.

Review of oil deregulation law

Even before the United States and Israel’s war on Iran, the Legislative-Executive Development Advisory Council already listed proposed amendments to the Downstream Oil Industry Deregulation Law as among its priority measures.

Now that the crisis in the Middle East has impacted the Philippines, Marcos is not ruling out the possibility of repealing the 1998 law, although added that the government’s focus are immediate solutions.

In the Senate, no less than Senate President Tito Sotto filed a bill seeking a repeal of the measure, which allowed oil companies to set fuel prices based on industry standards. The law has made it virtually impossible for the government to crack down on oil companies that are supposedly selling pre-war oil supply at premium prices.

In the House, there are at least three bills seeking the repeal of the said law, filed separately by Makabayan lawmakers, the Duterte bloc, Manila 6th District Representative Bienvenido Abante, and Paranaque 1st District Representative Eric Olivarez.

Fuel price cap

Senator Bam Aquino filed a bill seeking to subject petroleum products under price control. Under the proposal, gasoline, diesel, and other products will be classified as basic necessities whose prices can be capped during emergency situations.

In the House, Quimbo is cold to the proposal, saying that oil firms will simply stop selling if they are forced to sell below international market price.

“Not only will we face the problem of rationing, but more importantly, because the supply being sold is low, based on the basic law of supply and demand, the price will go up. So, it becomes counterproductive,” Quimbo said.

VAT suspension

Progressive groups have been calling for the suspension of the value added tax on petroleum products.

During a Senate hearing on March 26, representatives from small oil players expressed support for the proposed suspension, saying it will ensure immediate price adjustments to the benefit of consumers.

Quimbo cautioned during a press conference that VAT removal is administratively complicated. Aquino said during a Senate hearing that more discussions on the matter are expected. – Rappler.com