BAYAN MUNA: CONSUMERS SHOULD BRACE FOR ‘PRICE EXPLOSION’ DUE TO UNPRECEDENTED OIL PRICE HIKE PLUS TRAIN TAXES
Bayan Muna Chairman Neri Colmenares and Bayan Muna Rep. Carlos Isagani Zarate today warned consumers on the biggest oil price increase yet that may cause not just price shocks like last year but a ‘price explosion’ because last year’s price increases and inflation may seem small compared to what will happen now with the implementation of the second tranche of the TRAIN law.
“For example, oil companies today will implement a price increases for gasoline around P1.40/L, diesel at P2.30/L and kerosene at P2.00/L supposedly due to OPEC’s supply cut of 1.2 million barrels of oil per day from January to June. But with the TRAIN Law’s second tranche of excise oil excise taxes, another P2 will be added to diesel and gasoline and P1 for per kilogram of LPG. The increase for diesel would effectively be P4.30 and gasoline P3.40! Just imagine the domino effect on the prices of other goods and services that would make,” added Colmenares.
“Last year’s inflation was already the worst in 10 years. Government should at least suspend the TRAIN Law to rein in high prices,” he stressed.
He said that government’s earlier projections of low oil prices in the global market would not happen with OPEC’s decision to cut supply. “Thus the reason for not suspending TRAIN’s 2nd tranche, which was that oil prices would be low, does not hold true anymore. We might be seing a situation similar to 2018 where inflation soared due to a combination of high wold prices and TRAIN’s taxes,” he said.
With TRAIN’s 1st and 2nd tranche of taxes, excise taxes for diesel now totals P4.50, gasoline is at P9.00 and LPG at P2.
Rep. Zarate said that ‘kumbaga ay maski ang lupit na ng hagupit ng unang tranche ng TRAIN law sa mamamayan ay patikim pa lang pala ito at mas malupit ang tatama ngayong taon.”
“Price explosion talaga ang mangyayari kung ganun at dapat itong pigilan. Again we are urging Congress leaders to fast track House Bill 7653 to repeal the excise tax on oil and for the Supreme Court to declare as unconsitutional the anti-people TRAIN law,” ended Rep. Zarate.###