Councilor Danny Dayanghirang on Tuesday called for a series of legislative measures aimed at mitigating the economic impact of rising fuel prices and increasing costs of basic commodities in the Philippines.
In a privilege speech delivered during the regular session of the City Council, the
chair of the Committee on Finance, Ways and Means underscored that inflationary pressures continue to affect Filipino households and key economic sectors, driven by global fuel price volatility, geopolitical tensions, supply chain disruptions, and existing taxes on petroleum products.
He noted that under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, fuel excise taxes currently amount to about P10 per liter for gasoline, P6 per liter for diesel, and P5 per liter for kerosene, aside from the 12 percent value-added tax (VAT) imposed on petroleum products.
Dayanghirang stressed that since fuel is a major input in transportation, agriculture, manufacturing, and food distribution, price increases create a cascading effect that pushes up transportation fares, electricity rates, production costs, and ultimately the prices of goods in the market.
“Fuel is a fundamental economic driver. When its price rises, it inevitably affects transportation, food production, logistics, and the cost of basic commodities,” he said.
To cushion the impact on consumers, transport operators, farmers, and small businesses, Dayanghirang proposed several legislative mitigating measures that could be pursued at both the national and local levels.
Among the key proposals is the temporary suspension or reduction of fuel excise taxes during periods of abnormal price increases.
He said such a mechanism could allow tax rates to automatically decrease when fuel prices reach certain thresholds, potentially lowering pump prices by P3 to P10 per liter and easing inflationary pressure.
He also proposed targeted fuel subsidies for PUV drivers, farmers, fishermen, and logistics operators to help stabilize fares and food prices.
In cases of severe shortages or price spikes, he suggested a strategic fuel rationing program prioritizing public transport, agriculture, and food supply.
He also stressed stronger price monitoring and anti-profiteering measures, including regular fuel station inspections and coordination with the Department of Trade and Industry and the Department of Energy (DOE).
Dayanghirang likewise proposed local initiatives to stabilize public transportation, such as fuel vouchers for jeepney drivers, fare stabilization programs, and subsidies for transport cooperatives.
For long-term resilience, the councilor also pushed for renewable energy programs such as solar-powered government facilities and electric public transport, along with food security initiatives like urban agriculture and community farming.
He also urged local legislative councils to pass resolutions asking Congress to suspend or reduce fuel excise taxes, expand subsidies, and provide inflation mitigation funds to local governments.
At the local level, he also proposed ordinances that would temporarily reduce local taxes and fees, strengthen price monitoring mechanisms, and promote renewable energy and food security programs.
“The rising cost of fuel and commodities requires coordinated action between national and local governments,” Dayanghirang said.
