Beyond pump prices: Iloilo strike targets VAT, Oil Deregulation Law

ILOILO CITY — Transport groups will hold a two-day strike on Tuesday and Wednesday, Sept. 29 and 30, to protest continuing increases in fuel prices, which they said are worsening the financial difficulties of drivers and operators.

The No to Oil Price Hike Coalition will lead the protest, which is scheduled from 6 a.m. to 6 p.m. at Jaro Plaza on both days.

In a statement, the coalition called for lower fuel prices and higher wages for workers, saying the rising cost of fuel has placed a heavy burden on drivers, operators, and other ordinary Filipinos.

The group said fuel prices have risen from around PHP 55 per liter.

It also claimed that drivers’ daily income has been reduced to as little as PHP 1,000.

According to the coalition, the increases are being driven in part by concerns over a possible shortage in global fuel supply.

It also criticized the Oil Deregulation Law, which it said has reduced government control over fuel pricing and allowed oil companies greater influence over prices.

The law, formally Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998, ended government price-setting in the downstream oil industry. Oil companies now adjust pump prices based on world market movements.

The group also opposed the value-added tax (VAT) and excise taxes imposed on fuel, arguing that these further raise the cost of petroleum products.

Fuel is subject to a 12% VAT. It is also subject to excise taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, or Republic Act 10963, which have stood at PHP 10 per liter for gasoline and PHP 6 per liter for diesel since 2020.

The coalition said the impact of rising fuel prices extends beyond the transport sector to commuters, farmers, fisherfolk, small business owners, and other members of the public.

It added that higher fuel costs also push up fares, food prices, and the cost of other services.

 

Coalition demands

The coalition is demanding a PHP 1,200 living wage for workers and fairer income for drivers and operators.

It is also calling for the removal of what it described as burdensome VAT and excise taxes, as well as a rollback of fuel prices to PHP 55 per liter.

The group is further seeking the repeal of the Oil Deregulation Law and the nationalization of the oil industry, which it said would reduce the country’s dependence on imported petroleum products.

It also called for an end to what it described as United States “war aggression” around the world.

The coalition maintained that the burden of the fuel crisis should not be passed on to drivers, workers, and ordinary consumers.

It urged the public to join the Sept. 29 and 30 strike in support of what it described as the livelihood and income concerns of workers and transport sector stakeholders.