A band-aid solution

By: Solana

Cartoon by: Meraxes

Months into the US-Israel-Iran War, the Philippines has already experienced the dire effects of the oil crisis. With 70% of our oil imported and passing through the Strait of Hormuz, the country is left with an unstable supply of oil, electricity, and even liquefied petroleum gas (LPGs).

The immediate rise in diesel prices from PHP50-60 per liter to as high as PHP160 dealt an immediate blow to public utility vehicle drivers such as the jeepney drivers. In one case, a jeepney driver earns around PHP1500 in a half day drive, his usual take home pay narrowed down to 300 as he spends PHP800 in diesel and the rest is for boundary. That PHP300 is not enough to support one’s needs in this economy, much more for a family.

Hundreds and thousands of drivers and farmers stand in line in scorching heat to receive cash aid. While some are thankful, some say that it is a temporary solution. Ayuda has only gone so far. A one-time PHP5,000 cash aid may solve some problems now, but it is not a sustainable long-term solution. If a jeepney driver is feeding a family of four, the PHP5,000 is not enough to cover the necessities for a week or two. Electricity and cost of goods are also rising as transportation, and logistics are powered by fuel as well.

Efforts by Congress to expedite presidential powers on suspending excise taxes has reached a bottleneck situation with the executive branch. Last March 17, Senate has approved granting the President emergency power suspend or reduce excise tax on fuel to mitigate the impact of rising crude oil prices due to the war in West Asia. However, in a press conference later on, presidential spokesperson Claire Castro said that the President will look into suspending the fuel taxes.

Almost a month later, President Marcos Jr. suspended excise tax on kerosene and LPGs only—PHP5.00-6.00 and PHP3.00-PHP4.00 difference from the current price, respectively. As for diesel and gasoline prices, discussions are still being made with the Development Budget Coordination Committee are still being made as per the president.

As per Finance Undersecretary Karlo Fermin Adriano, PHP136 billion per year in revenue will be lost if excise fuel taxes are suspended. Meanwhile, the Marcos administration has approved the use of PHP8 Billion for financial aid or ayuda allotted for barangays, and a cumulative PHP238 billion was allotted by the country’s budget department for the oil crisis response. The majority of this “response” was ayuda or aid for farmers, drivers, and other affected industries.

Band-aid solutions such as ayuda, libreng sakay, and a capped subsidy on a deep cut problem will not hold up in the long run. Ordinary citizens are already bleeding at the pump prices. How much more of a wound will the government need to drill to see the damage it is doing to its people?

In a time where inflation is already high and thousands of pesos are lost from the pockets of Filipinos per week just from fuel alone, the Philippine government should have acted urgently to help its people. The country cannot afford to respond with half-measures or delay assistance while regular Filipinos bear the brunt of rising costs. A PHP20 increase will deploy a domino effect from the transportation we take to the food on our table.

Moreover, empty promises and piecemeal solutions will only increase public dissatisfaction and lower trust in leadership. Concrete, rapid interventions—whether through targeted subsidies, fuel tax modifications, or stronger oil regulation—must be enacted without delay.

Now that price hikes for oil have somewhat cooled down in the country, the costs remain high. Consumer goods rarely decrease as these increased prices become a cushion for businesses in case raw materials are affected once more; this is the new baseline. The unresolved tensions between the United States and Iran continue to fuel uncertainty in the Strait of Hormuz, igniting concerns over a global energy and oil crisis.