ILOILO City – A consumers’ group staged a picket protest against rising fuel prices, warning that as much as one‑third of every liter paid by motorists goes to government taxes as oil companies imposed another round of increases that extended weeks‑long price hikes.
Ilonggo consumers under the Panay Consumers Alliance (PCA) held the protest in Jaro district, condemning what they described as the combined impact of relentless oil price adjustments, heavy fuel taxation, and the country’s deregulated oil industry.
On March 3, oil companies implemented another round of increases — P1.90 per liter for gasoline, P1.20 for diesel, and P1.50 for kerosene. The adjustments marked the 10th consecutive weekly increase for diesel and kerosene and the eighth straight hike for gasoline.
The continued increases, according to PCA, have pushed pump prices in Iloilo to between P55 and P70 per liter, placing additional pressure on drivers, transport operators, workers, commuters and ordinary households already grappling with the rising cost of living.
Data compiled by the group showed that since the start of the year, fuel prices have risen by P4.80 per liter for gasoline, P8.20 for diesel and P6.20 for kerosene.
Oil companies have attributed the continuing increases to escalating geopolitical tensions in the Middle East, which have disrupted global oil supply and trading.
However, the PCA argued that domestic policies have made fuel prices in the Philippines especially vulnerable to speculation and market manipulation.
According to the group, the Oil Deregulation Law or Republic Act No. 8479 allows automatic weekly price adjustments without effective state regulation, exposing consumers to the full impact of global oil volatility.
The PCA also highlighted the significant tax burden embedded in every liter of fuel sold in the country.
Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, excise taxes are fixed at P10 per liter for gasoline, P6 for diesel and P5 for kerosene, on top of which a 12‑percent value‑added tax is imposed.
Based on prevailing pump prices in Iloilo, PCA said diesel priced at P54.70 to P68.59 per liter carries an estimated P11.87 to P13.35 in combined excise tax and VAT — roughly 20 percent to 22 percent of the total price.
It further said gasoline priced at P55.70 to P60.09 per liter carries approximately P15.97 to P16.44 in taxes, equivalent to about 27 percent to 29 percent of the price motorists pay at the pump.
The figures show, according to PCA, that roughly one‑fifth of diesel prices and nearly one‑third of gasoline prices go directly to government taxes.
The group also pointed out that because VAT is percentage‑based, government collections automatically increase when fuel prices rise.
“We reiterate our demands: scrap the Oil Deregulation Law (RA 8479); impose stronger state regulation and full transparency in oil pricing; suspend excise taxes under the Tax Reform for Acceleration and Inclusion Law; remove the 12% VAT on petroleum products; buy back and restore public control of Petron Corporation; and provide immediate relief for transport groups, workers and consumers,” the PCA said in a statement.
The group warned that rising fuel prices have far‑reaching economic consequences, noting that increases in petroleum costs ripple across the economy by raising transport fares, pushing up food prices and driving overall inflation. (RJM/PN)
