by Bagong Alyansang Makabayan
The current surge in global oil prices once again exposes the vulnerability of the Philippine economy to external shocks and the structural weaknesses of our deregulated oil industry. Because petroleum products affect transportation, food prices, electricity, and almost every basic commodity, every oil price hike translates directly into greater hardship for Filipino families.
The Philippine government must therefore take decisive action to protect the people from runaway oil prices and from profiteering by large oil companies. Immediate relief measures must be complemented by structural reforms that will reduce our long-term dependence on imported fossil fuels and on the monopoly power of transnational oil corporations.
The Philippine government should condemn the ongoing US-Israel war on Iran which caused massive devastation in Iran, West Asia, and gravely affected the global economy. The US-led attacks exposed the brutality and barbarity of US imperialism and should serve as an urgent reminder that the expanded US military presence in the Philippines enabled by the mendicant foreign policy of the Marcos Jr government is endangering the lives of Filipinos while undermining our national security. US and Israel should immediately halt their acts of aggression.
In addition, BAYAN proposes the following short-term and medium-term measures to address the oil crisis.
- Suspend excise taxes and VAT on oil and petroleum products
The government must immediately remove or suspend the excise tax and the 12% value-added tax imposed on petroleum products.
These taxes significantly inflate pump prices and add unnecessary burdens on consumers during times of crisis.
Oil price shocks are beyond the control of ordinary Filipinos. It is unjust for the government to continue collecting billions in taxes from fuel while workers, farmers, drivers, and small businesses suffer from soaring prices.
- Impose price caps
Congress must amend existing laws so the government can impose price ceilings on oil products especially during extraordinary circumstances and to prevent profiteering and abuse by oil monopolies.
Petroleum is not an ordinary commodity. Its price directly affects the entire economy—from transportation to food production—making it essential for the State to intervene when market forces produce socially harmful outcomes.
- Require the unbundling of oil prices
The Department of Energy (DOE) can immediately issue a circular requiring oil companies to unbundle and disclose the components of oil pricing, including import costs, taxes, logistics, and profit margins.
Such transparency will expose excessive profit-taking and help prevent price manipulation in the downstream oil industry. Measures like this are already proposed in legislation requiring the unbundling of petroleum prices to ensure transparency and accountability in the industry.
- Expand bike lanes and pedestrian infrastructure
The government must accelerate the development of safe bike lanes and pedestrian facilities to reduce dependence on fuel-intensive transportation.
Investing in active mobility will help commuters save on transportation costs, reduce oil consumption, and improve public health and urban sustainability.
- Provide incentives for rooftop solar systems and other renewable energy technologies
Government should provide incentives, credit facilities, and financing support for households, communities and small businesses that install rooftop solar power systems, mini hydro systems, and other low-cost, locally produced renewable energy systems.
Encouraging widespread adoption of such readily available renewable energy systems can reduce electricity costs and decrease dependence on imported fossil fuels.
Such immediate relief measures must be paired with deeper reforms that address the root causes of the oil crisis:
- Re-regulate the oil industry
The deregulated oil regime has failed to ensure fair prices and has allowed oil firms to implement automatic price increases with minimal transparency.
Government must re-establish regulatory authority over the downstream oil industry to prevent collusion, cartel behavior, and unjustified price hikes. Legislative proposals have already called for the creation of a petroleum regulatory body and price stabilization mechanisms to ensure that petroleum products remain affordable and socially just.
- Renationalize Petron
Petron, once a state-owned company, should be returned to public ownership so that the government can directly intervene in the oil market.
As the largest refinery and petroleum supplier in the country, Petron plays a decisive role in domestic fuel supply.
Renationalization would enable the State to stabilize supply, regulate prices, and protect the public interest rather than private profit.
- Centralize procurement of petroleum imports
The Philippines imports around 95% of its petroleum needs, making it vulnerable to global price manipulation and speculation.
A centralized procurement system under a government entity could negotiate better terms from a broad mix of oil-producing countries, reduce import costs, and build buffer supplies to cushion price spikes. Such a system has been proposed to ensure adequate supply and protect the country from monopoly pricing by transnational oil corporations.
- Develop a strong domestic renewable energy industry
The government must actively support the growth of the local manufacturing, installation, and services sector in solar, wind, tidal, mini-hydro and other sustainable renewable energy technologies.
Expanding the renewable energy sector will create jobs, reduce electricity costs, and gradually lessen the country’s dependence on imported oil and fossil fuels.
The current oil crisis is not merely the result of geopolitical tensions or market volatility. It is also the product of decades of deregulation, privatization, and excessive reliance on imported fossil fuels controlled by powerful transnational corporations.
The Filipino people should not be held hostage by volatile global markets and the profit-driven practices of oil companies.
By implementing immediate relief measures while pursuing structural reforms in the oil and energy sector, the government can protect consumers today and move the country toward energy security, national industrialization, and a more sustainable future.
Tama na ang pahirap sa mamamayan. Panahon na para ipagtanggol ang interes ng sambayanan laban sa krisis sa langis. #
