“The government should move to allow Filipinos to cope with hard times.”
With the Russian invasion of Ukraine pushing up the prices of fuel and other commodities, it appears that the Duterte administration does not see the need to declare an economic emergency since the situation is beyond the government’s control.
But even without a formal declaration of an economic emergency, the government should move to allow Filipinos to cope with hard times.
A crucial first step is to adopt the suggestion of Senate Minority Leader Franklin Drilon for the government to suspend the collection of fuel excise taxes in order to cushion the impact of rising oil prices.
There is no legal impediment that would stop the executive department from doing this, the lawmaker emphasized: “We are not seeking an exemption from taxes here, and therefore a strict construction of the law is misplaced”. He was referring to the Tax Reform for Acceleration and Inclusion (TRAIN) law.
“Filipinos are suffering. The burden should be borne by the government. The government cannot just stand and hide behind the law to say that there is nothing that can be done. We cannot wait for the law to be amended before we act. The situation is changing rapidly by the day and we need to act fast,” he added.
It is true as he pointed out that no law prevents the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) from recommending the suspension of the collection of excise taxes on fuel imports, “if they really want to mitigate the impact of high oil prices on the cost of goods and living expenses of the ordinary Filipino.”
Drilon explained: “They implement the law. Who will blame DOF and BIR if they suspend the excise taxes on fuel products? Who will file a case against them? Whose rights will be violated if the taxes are suspended? Please stop hiding behind the law. The TRAIN law does not intend to tie the hands of the government and prevent it from responding to shocking increases in oil prices to the detriment of consumers.”
According to the Department of Energy, if Dubai crude reaches $120 per barrel, gasoline prices may rise to P78.33 per liter, while diesel may leap to P68.97 per liter.
“The provision of the TRAIN law should be interpreted liberally, not just in light of suspending the increases in excise taxes but also its imposition. We are in an extraordinary situation. It is a situation which calls for the liberal application of the law and for compassion,” Drilon said.
Fuel prices have been increasing for the 10th consecutive week now. We see no respite from the upward trend as a result of the prolonged Russian war against Ukraine, the tight global gas inventory, and our deregulated oil industry. The situation warrants firm resolve on the part of the government to adequately respond to the economic difficulties we now face.
Go nuclear or not?
As expected, the government has approved the inclusion of nuclear power in the country’s energy mix through Executive Order (EO) 164 signed by the Chief Executive last month.
The national nuclear power program seeks to “ensure the peaceful use of nuclear technology anchored on critical tenets of public safety, national security, energy self-sufficiency, and environmental sustainability.”
The new policy follows the recommendation of the Nuclear Energy Program Inter-Agency Committee (NEP-IAC), which conducted a pre-feasibility study and public consultation on the matter.
Through EO 164, the Chief Executive has recognized that nuclear power can be a reliable, cost-competitive, and environment-friendly source of energy based on the experience of highly developed countries.
The use of nuclear energy is seen to address the increasing demand for clean energy, rising by 4.4 percent annually, or an additional capacity of 68 gigawatts by 2040.
The mothballed Bataan Nuclear Power Plant (BNPP) is still considered part of the national nuclear program, but other nuclear power installations will be pursued.
A study conducted in 2017 by Russia State Atomic Energy Corporation said the rehabilitation of BNPP will require around USD3 billion to USD4 billion.
The EO cites a Public Perception Survey on Nuclear Energy in 2019 that showed almost 79 percent of Filipinos expressing approval or acceptability of the possible use or rehabilitation of an existing nuclear power plant. The same survey showed that 65 percent approved the construction of new nuclear power plants and 78 percent are open to learning more about nuclear energy.
Since 2016, the DOE has supported the adoption of nuclear power, saying it can help alleviate energy supply issues as new technologies make nuclear a safer source of energy. But a new regulatory framework must be crafted to make investments in nuclear power attractive to both the government and the private sector. However, even with a new framework, the earliest possible use of nuclear power may not be until 2027.
But there are dissenting voices as well. There’s Greenpeace Southeast Asia, which has slammed DOE moves to go nuclear as this “would expose the Filipino people to the inherent and serious dangers of nuclear power.”
The environmental group warned that nuclear power is the most dangerous source of electricity, and throughout their life cycle, nuclear plants contribute significantly to climate change.
In addition, the group said, nuclear is the most expensive option for power generation as capital costs are astronomical and construction delays can last as many as 17 years.
Whose side are you on?