PMCJ to PH Govt: Big-time oil price hike and looming power rate hike prove unreliability of fossil fuels in times of crises; scrap VAT and fuel excise tax now!
- Media Communications
- Mar 12
- 3 min read
Quezon City, Philippines — The Philippine Movement for Climate Justice (PMCJ) condemns the administration's handling of the impact of the ultra oil price hike on consumers. Following the Mar. 10, 2026 price surge, oil retailers increased the prices per liter of gasoline by ₱7.00 to ₱13.00, diesel by ₱17.50 to ₱24.25, and kerosene by ₱32.00 to ₱38.50.
With Energy Secretary Sharon Garin warning of a 16% increase in electricity rates next month due to the current global oil crisis, Filipino consumers are forced to bear the highest cost of the government’s paralysis.
“The Department of Energy (DOE)’s so-called monitoring and issuance of multiple show cause orders into hoarding and unauthorized price hikes are a smokescreen for the failed oil deregulation law. We don’t need these toothless warnings. What we need is an economic policy that must start with a reformed finance and fiscal policy, overhauling the regressive tax system that shifts the burden onto the people for multiple crises they did not create. Scrapping the Value Added Tax (VAT) and fuel taxes is not just an option but necessary to prevent total economic collapse. It’s high time that we tax the rich and hold the ultra-rich and government officials who are involved in the massive corruption accountable,” said Ian Rivera, PMCJ national coordinator.
“Since the fiscal crisis in the 1980s, the system has never been re-oriented to be agile in the midst of global shocks,” Rivera stressed.
Instead of addressing the unrestricted pricing and regressive taxation, one of the government’s knee-jerk reactions to the surge in oil prices is its proposed four-day workweek, adjusting the workday to 10 hours in the National Capital Region. While House Speaker Faustino Dy and Majority Leader Sandro Marcos push for a bill granting the President emergency powers to suspend excise taxes on gasoline products, it is already an admission that these taxes are unbearable. But it remains a half-measure designed to sideline the permanent scrapping of taxes that is supposed to protect the economic survival of the Filipino people.
“Finance Undersecretary Karlo Fermin Adriano told the House that if the fuel excise tax is suspended from May to December 2026, total revenue losses will be around ₱136 billion. This narrative framing is a scare tactic, but essentially an admission of guilt for a failed system. Making suspension of fuel excise tax a bad idea. When in fact, it is just a band-aid solution that allows the government to continue collecting a 12% VAT windfall as oil prices spike. Why must we stick to a deregulation law that fails to shield the people from inflated prices?” Rivera lamented.
The Strait of Hormuz, which Iran closed in retaliation for the US-Israel military aggression against the Iranian regime, is one of the world's most important oil chokepoints. About 20 million barrels of oil traveled through the Strait of Hormuz per day in 2025 alone. In 2024, 84% of the crude oil and condensate and 83% of the liquefied natural gas that moved through the Strait of Hormuz were bound for Asian markets. Sadly, countries like the Philippines are among those that are still heavily dependent on fossil fuels.
PMCJ senior renewable energy (RE) officer Edwin Tesaluna notes that our economic system has been built to make us helpless, given the comparative advantage the Philippines has. Like, 100% RE grid is possible, saying, “Two decades ago, Uruguay started a plan to quickly construct wind farms to remove fossil fuels from its power grid gradually. Currently, RE provides over 90% of the nation's electricity. Uruguay's energy prices held steady during the turmoil caused by the conflict in Ukraine. Their country’s exposure to previous spikes in energy prices was reduced because of the switch to RE.”
Tesaluna added, “It is not a pipe dream. For this shift to be compatible with our common goal of a future where everyone's wants, rights, and ambitions are satisfied while remaining within the ecological bounds of the planet, it is not enough for it to happen quickly; both the process and the outcomes must be fair and just.”
“Crises after crises. These crises are not only due to the ongoing conflict in West Asia, commenced by the US-Israel unprovoked aggression on Iran. We have been stressing that our reliance on fossil fuels will keep us volatile during major oil price hikes and other massive increases in basic commodity prices, such as electricity. It is infuriating to think that we need to experience this worsening imperialist war to see how our current corrupt system is severely failing us. It is a windfall for the Philippine elite, the reason they have to maintain this failed and rotten economic system, which always burdens the people. Those responsible for the wreckages must pay for what they have caused.” Rivera ended. ###
For inquiries, contact:Sheila Abarra
Senior Media and Communications Officer
Philippine Movement for Climate Justice
Viber: +639916692356
WhatsApp: +639380898327
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