ANGARA SAYS TARIFF REMOVAL TO BENEFIT ONLY OIL FIRMS

Removing tariffs to cushion the effects of recent price hikes in oil and petroleum products would only benefit oil companies, and not the people.

This was the view expressed by Senator Edgardo J. Angara when asked by journalists recently on what government should do to minimize the economic effect of the latest round of increases in the prices of gasoline.

Im more in favor of providing subsidies rather than taking away the tariffs. If you do the latter, it will only line the pockets of oil firms even more. At present, their profits are scandalously high, Angara said.

As a temporary measure, Angara added that subsidies should be set aside for a number of sensitive products, like LPG for example. In the long run, however, government should push for the development of renewable energy, such as biogas.

With government expected to earn about PhP20 billion if oil prices rise, there is all the more reason to allot this to a subsidy fund to support a number of products.