Iloilo consumer group protests fuel hikes, demands oil law repeal

By Juliane Judilla

The Panay Consumers Alliance (PCA) staged a picket protest at a Shell station in Jaro, Iloilo City, on Tuesday, March 3, denouncing consecutive fuel price hikes and calling for the repeal of the Oil Deregulation Law, or Republic Act No. 8479.

The protest coincided with another round of fuel price increases implemented by oil companies: PHP 1.90 per liter for gasoline, PHP 1.20 for diesel, and PHP 1.50 for kerosene.

This marks the 10th consecutive week of increases for diesel and kerosene and the eighth straight hike for gasoline, further straining drivers, transport operators, workers, commuters, and ordinary consumers.

Fuel prices in Iloilo now range between PHP 55 and PHP 70 per liter, intensifying the burden on households already grappling with the rising cost of living.

Prices surge since start of the year

According to PCA, fuel prices have risen sharply since January, with gasoline up by PHP 4.80 per liter, diesel by PHP 8.20, and kerosene by PHP 6.20.

Oil firms have attributed the increases to escalating tensions in the Middle East.

However, PCA argued that even prior to the geopolitical tensions, the country’s pricing system left consumers vulnerable to speculation and manipulation due to deregulation, which allows automatic weekly price adjustments without strong state oversight.

“The recurring price hikes expose the fundamental failure of the Oil Deregulation Law,” the group said in a statement.

“Instead of protecting consumers from global volatility, the current system guarantees automatic price pass-throughs and secures corporate profits,” they added.

One-fifth to one-third of pump prices go to taxes

Beyond deregulation, PCA underscored the significant portion of pump prices that goes to government taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

Under the law, excise taxes are fixed at PHP 10.00 per liter for gasoline, PHP 6.00 per liter for diesel, and PHP 5.00 per liter for kerosene, on top of which a 12% value-added tax (VAT) is imposed on petroleum products.

Based on current pump prices in Iloilo, diesel priced at PHP 54.70 to PHP 68.59 per liter carries an estimated PHP 11.87 to PHP 13.35 in combined excise tax and VAT, representing roughly 20% to 22% of the total price.

Meanwhile, gasoline priced at PHP 55.70 to PHP 60.09 per liter includes approximately PHP 15.97 to PHP 16.44 in taxes, equivalent to about 27% to 29% of the pump price.

“This clearly shows that roughly one-fifth of diesel prices and nearly one-third of gasoline prices go directly to government taxes,” PCA said.

The group also emphasized that VAT collections automatically rise when fuel prices increase, since VAT is percentage-based.

“As pump prices go up, both oil companies and the government collect more, while drivers, workers, and ordinary families bear the burden,” the statement read.

PCA maintained that deregulation primarily benefits oil companies while worsening inflation and driving up transport and food costs across the economy.

The alliance reiterated its demands, which include the repeal of Republic Act No. 8479; the suspension of excise taxes under the TRAIN Law; the removal of the 12% VAT on petroleum products; stronger state regulation and full transparency in oil pricing; the government buyback and restoration of public control of Petron Corporation; and the provision of immediate relief for transport groups, workers, and consumers. (Photos by Juliane Judilla / Daily Guardian / PT)