Iloilo City Councilor Romel Duron sees the need for the government to take action to mitigate the impact of rising global crude oil prices.
In his privilege speech during Tuesday’s (March 1) regular session, Duron said President Rodrigo Duterte should declare a state of calamity for economic reasons.
The declaration will enable local government units (LGUs) to use their calamity funds for, among others, the release of fuel subsidies to drivers and other transport workers.
“In my humble opinion, we are now experiencing oil crisis and possibly economic crisis or calamity,” said Duron.
“The war between Russia and Ukraine though far away from us is affecting our country entirely. Calamity is synonymous with crisis or disaster,” he continued.
Duron noted that there are approximately 2,538 jeepneys, 2,000 taxis, and 1,800 tricycles operating in Iloilo City.
The councilor said the successive increases in oil prices made the burden that COVID-19 pandemic-stricken drivers and operators have been carrying since March 2020 even heavier.
According to Duron, drivers are paying a boundary fee of P500 and spending an average of P1,100 per day on fuel.
They can make an average of 8 roundtrips or 16 trips daily and are earning an average of P100 per trip or P1,600 per day, he said based on his personal interviews with the drivers.
“They describe their situation as puro kahig wala ng tuka. Maayo lang kay ang operator ginapanubo nalang ang arkila into P150 nga take home para sa ila panimalay. Kon madakpan pa sang trapik enforcer especially LTO wala na gid igawad sang lisensya.”
For Duron, the one-time fuel subsidy for the drivers is insufficient.
“Monthly subsidy in times of crisis is a must so that drivers and operators will not demand for fare increase to avoid the domino effect of price increase in other commodities. Oil Price Stabilization Fund must be re established and the price of oil must be regulated,” he stressed.
Under the 2022 General Appropriations Act, Duron said P2.5 billion has been set aside for the fuel subsidy program to provide financial assistance or vouchers to public utility drivers/operators nationwide.
This subsidy, however, is not immediate and dependent on the three month rule or when the price of oil exceeds USD 80 dollars per barrel based on the Mean of Platts Singapore or MOPS.
“The price of crude oil is now more than 92 dollars per barrel and increasing and could possibly hit 130 dollars per barrel if the conflict persisted and sanctions imposed on Russian oil export,” he said.
“Russian accounts for 12 percent of global oil production and 24 percent of natural gas. This year, fuel products have increased for the 9th straight weeks. Gasoline at 64 per liter and diesel at P57 per liter,” he added.IMT
