Staggered Oil Price Hikes Fail to Shield Filipinos
MANILA, Philippines — The recent decision to implement staggered oil price hikes does not shield Filipino motorists from the harsh impact of rising fuel costs, according to the transport group Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide (Piston). The group stressed that spreading out the increases only prolongs the burden on consumers and transport workers alike.
This response came after the Department of Energy (DOE) announced that local oil companies agreed to phase in the oil price hikes amid escalating tensions in the Middle East, particularly the conflict involving Israel and Iran. The staggered oil price hikes were intended to ease the blow of sudden fuel cost surges.
Transport Group Criticizes Staggered Oil Price Hikes
“Each round of price increases, regardless of how they are structured, means higher expenses for transport operators and more costly goods for Filipino families,” Piston emphasized in a statement released on Tuesday. The group also pointed out that this approach does nothing to secure the country from external shocks, exposing the Philippines’ heavy reliance on imported oil and its vulnerability to geopolitical conflicts involving powerful nations.
Meanwhile, the DOE explained that the staggered oil price hikes aimed to protect consumers from abrupt spikes in fuel prices triggered by the ongoing Middle East crisis.
Middle East Conflict Drives Oil Prices Up
On June 13, Israel launched preemptive airstrikes targeting military and nuclear facilities in Iran. In retaliation, Iran fired ballistic missiles, escalating the conflict. Following these events, global oil prices surged by nearly nine percent.
The situation intensified when the United States joined the fray on Saturday, striking three major Iranian nuclear sites. These developments have driven oil prices higher, directly affecting the cost of fuel in the Philippines.
Calls for Energy Policy Reform Grow Louder
In light of the ongoing oil price shock, Piston urged the government to take urgent steps to ease the burden on Filipino consumers. The group called for the removal of regressive taxes on fuel, such as the value-added tax (VAT) and excise tax. They also recommended repealing the Oil Deregulation Law and pushing for the nationalization of the country’s oil and energy sector to reduce vulnerability to global market fluctuations.
With fuel prices set to increase by nearly P5 per liter next week, motorists are bracing for higher transportation costs that will ripple through the economy. The transport group warns that these staggered oil price hikes offer no real protection against the broader impacts of international conflicts on local fuel prices.
For more news and updates on oil price hikes, visit Filipinokami.com.