Waiting in agony
It is beyond debate that the increase in the prices of petroleum products is something that cannot be ignored. It hurts to the core.
As the price of diesel increased by P13 per liter last week along with gasoline and kerosene, transport groups geared up for mass protests while various workers’ groups made resounding calls to increase the daily minimum wage. In fact, our regional wage boards across the country have received several petitions to increase the minimum wage. With minimum wages fixed 3 to 5 years ago, our workers will have the hardest time coping with increasing prices of basic goods and services.
In response to the alarming price increases in fuel and other commodities, the Duterte administration has decided to give cash aids instead of giving in to the proposal to suspend the excise tax on fuel. The government is not ready to forego P131.4 billion from excise taxes as this will only force the government to borrow more money. Hence, the decision is to give each eligible household, the bottom 50 percent of all households, P200 every month or P2,400 in a year.
Certainly, the giving of cash aid is not the only tool that the government has within its disposal to cushion the Filipinos especially the poor against the devastating effects of rising prices. While structural changes in the industry may be necessary, introducing these changes at the height of this crisis and during an election period is not advised. Rational thinking may be clouded by emotions and by the hype fueled by the ambitions of our politicians.
There is a proposal to reduce excise taxes on fuel instead of completely suspending its implementation. The reduction is a difficult balancing act for the government, but this may be a better response than just giving a pittance to the poor. True, the rich may also benefit from the reduction but with fuel as an input to almost every product or service produced in this country, uncontrolled increase in the prices of commodities may be probably slowed down.
The government has the resources to tap experts in the field to come up with a better solution to this crisis. If the Filipino people continue to wait in agony for that better solution, then we are faced with a crisis in leadership.