Partido Reporma standard-bearer Senator Panfilo “Ping” Lacson reiterated the call for the immediate suspension of excise taxes on fuel products, even on a temporary basis, as another big-time oil price hike looms this week.

The presidential aspirant said this will provide the much-needed breathing space not just to motorists but also to all sectors affected by the upward trend in fuel prices.

“Another round of price hikes in fuel is expected this week and this time, the increases are unprecedented. The Mean of Platts Singapore (MOPS) reference price for refined petroleum products and other oil price indices have already reached levels never seen before as a result of Russia’s invasion of Ukraine,” the Partido Reporma standard-bearer said in a statement Sunday.

He added that this could cause gasoline and diesel prices to soar to more than PHP80 to PHP90 per liter.

Lacson proposed that a mechanism be put in place, where the excise tax on fuel will be suspended when crude oil prices based on the MOPS reach or exceed USD90 to USD100 per barrel.

The excise tax can be reimposed when the prices go below these levels.

He pointed out the urgency of the matter as the upward trend in fuel prices will also impact the prices of food and other basic commodities.

“The upward trajectory of fuel prices is expected to continue and the government must do something now to mitigate the impact of international oil prices on motorists, the public transport sector, fisherfolk, and farmers who will bear the brunt of this burden if we do not act now,” Lacson stressed.

While there may be a loss of revenue for the government when the excise tax is suspended, Lacson said “what matters now is the plight of ordinary Filipinos.”

“Government should give the people ‘breathing space’ so that the economy can recover. This is a temporary measure but it will be welcomed as we are all just trying to get back on our feet,” he added.

“Our long-term solutions should be in investing in renewable energy, facilitating the transition to electric vehicles in our transport sector, and exploring for oil, gas, and other indigenous energy resources that can supply sustainable energy. This will serve multiple purposes in relation to climate, the environment, and sustainable development. This will remove our dependence on imported fuel and will be a buffer against disruptions like war,” Lacson said.

As this developed, the presidential aspirant said the Philippine government should be “vigilant and prepared” over the situation in North Korea aside from the conflict between Russia and Ukraine.

Lacson cited continued reports of recent aggressive behavior from North Korea, including the firing of a suspected ballistic missile days before the March 9 presidential elections in South Korea.

“We need to watch this carefully, this is very close to us and quite unpredictable,” Lacson, who chairs the Senate Committee on National Defense and Security, said. He cited reports over the past weeks where North Korea has tested missiles twice.

While North Korea claimed its tests last February 26 and March 4 were connected to a new reconnaissance satellite program, the United States said analysis indicates it may be testing an ICBM or intercontinental ballistic missile.

A statement from the US Indo-Pacific Command said the “recent series” of ballistic missile launches by the DPRK (Democratic People’s Republic of Korea) “violate multiple UN Security Council resolutions and pose a threat to the DPRK’s neighbors and the international community.”

In response to North Korea’s activities, the US Indo-Pacific Command has increased its surveillance and reconnaissance collection in the Yellow Sea, and enhanced readiness among its ballistic missile defense forces in the region.

Lacson said the Philippines thus needs “to be equally vigilant as any flashpoint involving the Republic of Korea and Japan affects thousands of Filipinos in these two countries, aside from military responses from other quarters.”

“I hope that it does not come to this and that diplomacy will prevail. However, the reality is that the situation requires vigilance and preparedness on our part,” he added. (PNA)