TRAIN Law's Third Tranche to Cause Price Shocks
As the third tranche of the TRAIN Law is expected to hit consumers by next year, militant lawmakers aired their sentiments on its effects.
House Deputy Minority leader Carlos Isagani Zarate and his fellow Bayan Muna Rep. Ferdinand Gaite warned consumers for price shocks as the TRAIN Law's excise tax on oil are expected shake the pricing come early 2020.
"Even if the Department of Energy (DOE) is telling oil companies to first deplete their old stocks before imposing the added excise tax on oil products, without the unbundling of the prices of oil products we cannot tell for certain if the oil companies are already passing on the new excise taxes," Zarate said.
"Aside from unbundling oil prices for consumers to see the true prices of oil, we maintain that it is still best to repeal the TRAIN law so as to protect consumers from the upcoming price shocks like in 2018 when it was first implemented," the Davao-based solon added.
Zarate cited that under the law, diesel are expected to jack up by P1.50 per liter. Gasoline, kerosene, liquefied petroleum gas, and lubricating oils are to go up by P1 per liter.
Aside from that, bunker fuel and petroleum coke will likewise increase by P1.50.
For his part, Gaite said that "since the record high surge in prices in basic goods in 2018; prices have not gone down and it has nowhere to go but up because of the last tranche of TRAIN Law 1."
"The supposed lower inflation in 2019 being peddled by economic managers would be wiped out with the new price increases as well as higher demand for oil in the international market," Gaite noted.
"Again if the administration wants to shield consumers from the upcoming price onslaught then it should immediately repeal the TRAIN law," Gaite ended.