Bam warns of domino effect of fuel price hike

One of the senators who voted against the tax reform law cautioned the public on Wednesday about the possible domino effect of the increase in fuel prices.

In a statement, Senator Paolo Benigno “Bam” Aquino IV said the fuel price hike will likely impact the prices of goods and other services in the market.

"Nakakabahala ang pagtaas ng presyo ng bilihin dahil sa pagpataw ng buwis sa langis. Dagdag gastos na naman ito sa pamilyang Pilipino," he said.

Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law took effect January 1.

The TRAIN mandates the imposition of excise tax of P2.50 per liter on diesel starting this year, P4.50 in 2019 and P6 in 2020. For gasoline, the excise tax will be increased from P4.35 per liter to P7 this year, P9 in 2019, and P10 in 2020.

Aquino said the fuel price hike will lead to an increase in prices of goods, which will ultimately fall on the shoulders of consumers, especially poor Filipinos.

"Sa huli, mahihirap na Pilipino pa rin ang papasan at magdurusa sa epektong dulot ng TRAIN sa presyo ng bilihin," he said.

Aquino was one of the four senators who voted against the ratification of the TRAIN. The three others are Senators Risa Hontiveros, Ping Lacson, and Antonio Trillanes IV.

The Philippine National Taxi Operators' Association (PNTOA) meanwhile has said that it is looking to ask for a P16 per kilometer fare hike due to higher excise tax rates on petroleum products.

The Department of Energy (DOE) earlier said that the new excise tax rates will not affect the prices of petroleum products during the first weeks of 2018. It said retailers should not charge the new excise tax on old stocks.

News Online)

(GMA