ROXAS TO GOV'T: 'WHAT'S THE PLAN?'
WORLD OIL PRICES CONTINUE TO HIT RECORD-BREAKING LEVELS

Senator Mar Roxas sought the government for its plan on how to address the country's fuel price woes vis-a-vis geopolitical crises in the Middle East and other oil-producing countries.

He warned that world oil prices, already going off the roof and not showing any sign of slowing down, could push world oil prices to unprecedented levels, and may soon go beyond the $150-mark.

"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. This situation calls for a comprehensive plan that addresses our multifaceted problem, from foreign policy down to relief for our local transport sector," he said.

Roxas said there should be a consensus 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. 70% 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.

"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 said, adding 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?"

Roxas noted that tensions in the Middle East continue to rise given Iran's plan to impose controls on shipping in the Persian Gulf and Strait of Hormuz if their country was attacked. The Strait of Hormuz, a narrow water lane separating Iran from the Arabian Peninsula accounts for roughly 40% of the world's traded oil flows.

The president of the Liberal Party filed Senate Bill No. 1962 which seeks a 6-month suspension on the collection of VAT on oil products. He said he will continue to push for the suspension of the 12% EVAT on oil once Congress resumes session on July 28.

Roxas said 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."

Pump prices rose for the fourth consecutive week last weekend. Unleaded oil now costs P59.46 per liter, diesel costs P52.44/L, and an 11-kg tank of LPG costs P634.02.