Oil companies told not to pass on gas price hike to consumers

 

By Rose de la Cruz

 

Rep. Michael Romero of 1PACMAN partylist has asked the oil companies not to pass on the P7 per liter tax burden on fuel to the consumers but stagger this hike over a long period.

 

He also projected that more car owners would now use more Grab and Uber to avoid the steep incline in gasoline prices.

 

In a statement, Romerto said: “We have seen in previous big-time price hikes that the oil firms staggered their price adjustments. They might, as they have in the past, spread out the P7 per liter in installments. Maybe the staggering could be a P1.50-hike per week. There are other combinations they can do,” he said.

 

Gasoline prices are expected to rise P7 per liter in 2018 under the newly-passed excise tax rate of the TRAIN Law, Republic Act 10963.

 

Romero also said oil firms might also consider not passing on to consumers the full cost of the excise taxes because they are aware that Filipino consumers are price-sensitive.

 

“If the oil firms' economists say the P7 is too much to pass on fully at the gas pump, they might recommend to management that the pass- on be anywhere within the range of 50 to 90 percent of the full P7 excise tax per liter,” Romero said.

 

The young business tycoon said that motorists and commuters now have more transport options than before.

 

“Many owners of gasoline-powered vehicles could use their vehicles less. Some could now switch to public transportation because there are different options to choose from. The TNCs and TNVS will see their ridership spike because private vehicle owners’ gasoline-powered cars will spend more time parked at home,” Romero also said.

 

He suggested that the Metro Manila Development Authority and the Department of Transportation should “now seize this opportunity of a real shift in consumer choices.”

 

“More point-to-point buses should ply the major roads to ferry office workers and students. For jeepney drivers, the government can revive the Pantawid Pasada Program to subsidize PUJ purchases of diesel which now has an excise tax of P2.50 per liter.” He added.

 

 

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