Metro Manila, Philippines – Senator Bam Aquino has filed a bill seeking to classify diesel, gasoline, and other fuel products as basic necessities that can be placed under price controls in crisis situations.
In a statement on Monday, March 30, Aquino said the bill aims to address gaps in Republic Act 7581 or the Price Act, which only classifies liquefied petroleum gas (LPG) and kerosene as basic necessities.
“Gasoline and diesel, despite being a key driver of rising prices, are not effectively covered by price control mechanisms due to their deregulated status,” Aquino said in the bill’s explanatory note.
The bill sets the price control for 30 days, longer than the current 15 days for LPG and kerosene.
The law provides that automatic price controls for basic necessities—mostly food items—can last up to 60 days. Prices are frozen in areas declared under a state of calamity, disaster, emergency, martial law, state of rebellion, or war, or when the privilege of the writ of habeas corpus is suspended.
The country has seen skyrocketing fuel prices due to the conflict in the Middle East, which has also driven up the cost of other basic commodities. President Ferdinand Marcos Jr. has declared a state of national energy emergency, but no price freeze has been implemented.
The public is also awaiting the implementation of a law allowing the suspension of fuel excise taxes to help bring down costs.
Aquino also said the government should suspend the 12% value-added tax (VAT) to provide relief to consumers.
“Sa kasalukuyang presyo ng diesel ngayon na ₱124 kada litro, kapag inalis natin ang 12 porsyentong VAT at excise tax, bababa ang presyo nito ng halos bente pesos kada litro. Malaking tulong ito sa mga Pilipino,” Aquino said.
[Translation: At the current diesel price of ₱124 per liter, if we remove the 12% VAT and excise tax, the price could drop by almost ₱20 per liter. This would be a big help to Filipinos.]
He also renewed his call on the Department of Energy and economic managers to seriously study VAT reforms on fuel.
