Press Release
February 5, 2011

says gov't must find ways to cushion the impact of rising prices of goods and services on consumers

Senator Juan Miguel "Migz" Zubiri, principal author of the Renewable Energy Act of 2008, today called on the Aquino government to immediately find ways on how to cushion the impact of rising prices of basic commodities and services on consumers.

"This last few months, we have experienced the steepest climb of oil prices in the world market. Oil prices have been peaking progressively higher and stabilizing or settling down at higher and higher levels. The giant appetites of China, India and the US, and instability in the Middle East all exert upward pressures on prices," Zubiri lamented further noting that the increasing oil prices and the additional impact of VAT translates to higher consumer prices.

"The RVAT has made crude and petroleum products and electricity highly taxed commodities. Increased collection from RVAT is a gain for government coffers but it has caused much pain to consumers since its imposition. Every peso raked in by government is an additional burden shouldered by the consumer especially in times of rising oil prices and transportation costs," Zubiri argued in Senate Bill 2672 seeking the exemption of VAT on oil and electricity.

According to news reports, oil prices had gone up three times in January of this year alone and is expected to climb up again by 75 centavos to one peso for diesel and 50 to 75 centavos for gasoline following the increasing demands of oil in China. (

Zubiri has earlier called for an immediate review of the Oil Deregulation Law following the unabated oil increase in January of this year.

The oil price hikes hit consumers after the Aquino administration gave its nod to other transportation-related increases, such as the one-peso jeepney fare hike, 40-peso taxi flagdown rate, toll rates and the impending mass transport system fare hikes in March.

News Latest News Feed