Sen. Erwin Tulfo on Thursday said rising fuel prices have far-reaching effects on the Philippine economy, as higher gasoline and diesel costs drive up transportation fares, food prices, logistics expenses and the cost of other basic goods.
“Ang gasolina at diesel ay hindi lamang presyo sa gasolinahan,” Tulfo said during the Senate Committee on Energy hearing Thursday, Sept. 3.
“Kapag tumataas ang fuel prices ay tumataas ang pamasahe, transportasyon, presyo ng pagkain, logistics at halos lahat ng produkto, pero ang sweldo ng tao hindi na makaagapay,” he added.
The committee, chaired by Tulfo, tackled proposals to amend the Downstream Oil Deregulation Law to better protect consumers from volatile fuel prices.
Tulfo said the government must find a fairer system that would protect Filipino motorists and consumers while ensuring the oil industry remains stable and competitive.
“Kapag mahal ang langis ay buong ekonomiya natin apektado. Kaya ang tanong natin ngayon ay simple, paano natin gagawing mas patas ang sistema para sa lahat?” Tulfo said.
He also called for changes to the existing law, saying reforms are needed to provide greater protection to consumers.
Among the proposals discussed was the creation of a Strategic Petroleum Reserve to ensure a stable fuel supply during global disruptions. A reserve facility is already being planned in Bataan.
Lawmakers also proposed requiring oil companies to disclose the different components of fuel prices to make pricing more transparent and prevent excessive profits.
The proposed reforms would also impose stricter administrative penalties on companies involved in fuel hoarding and give the Department of Energy (DOE) authority to shut down firms that violate regulations.
Oil companies supported measures to strengthen the country’s energy security but warned that strict limits on profits could hurt competition in the deregulated oil market.
Senators said the proposed changes aim to strike a balance between keeping the oil industry stable and competitive and ensuring that fuel remains affordable for Filipino consumers.
