SORSOGON Governor Francis Joseph “Chiz” Guevarra Escudero, who is now seeking a Senate seat, again, agreed that the Oil Price Stabilization Fund (OPSF) subsidizing any petrol products price hike should be revived.
He said this is needed, saying Bohol and entire Visayas region have the highest oil price in the entire country compared to Luzon and Mindanao.
Escudero, who was with Gov. Arthur C. Yap during the press conference at the new Capitol on Thursday, said that when oil prices go up the chain reaction will be all other products that use oil also increase.
This paper monitored prices of gasoline and diesel in many parts of the province lately. Some of the costliest is now located in northern part where it used to be the cheapest in pre-Odette scenario.
The rates of prices range from P65/liter of gasoline (unleaded) up to P69.75/liter. Premium gas is sold at a difference of 70 to 80 centavos per liter compared to unleaded, while diesel, sold with a difference of between P7.00 and P9.00 /liter compared to unleaded.
Escudero, who is a lawyer by profession, said that another measure to cushion the impact of oil price hike is to implement an existing law.
The Bureau of Internal Revenue (BIR) is authorized to implement the said law which imposes about 10% of every liter of gasoline sold. He said that, for instance, if the gasoline is sold at P60/liter, the government share is 6 pesos.
It can also adjust to collect such excise tax with a lower rate, he said. Collecting a full percentage of the tax, the agency is like winning a sweepstakes but at the expense of the consumers, he added.
But the senator was short of saying that this needs legislation in the Senate he may initiate, like passing of a Resolution requesting the executive branch to revive the said OPSF.
OPSF was created under Presidential Decree 1956, Series of 1984, issued by then President Ferdinand Marcos.
Under the said law, section 8 provides: There is hereby created a Special Account in the General Fund to be designated as Oil Price Stabilization Fund for the purpose of minimizing frequent price changes brought about by exchange rate adjustments and/or an increase in world market prices of crude oil and imported petroleum products.
Former President Corazon Cojuangco Aquino amended the PD 1956 by issuing Executive Order No. 137.
It expanded the sources and utilization of the oil price stabilization fund (OPSF) by amending presidential decree no. 1956.
“An Oil Price Stabilization Fund was created under Section 8 of Presidential Decree No. 1956 to be used to reimburse the oil companies for cost increases on crude oil and imported petroleum products resulting from exchange rate adjustment and/or increase in world market prices in the desire to stabilize the prices of petroleum products for a longer period despite exchange rate adjustments or world market price changes,” the EO said. (rvo)
