Cusi: Rising fuel prices will impact electricity rates    

By Dominique Gabriel G. Bañaga

Department of Energy (DOE) Secretary Alfonso Cusi insisted rising oil prices are not the result of the Tax Reform for Acceleration and Inclusion (TRAIN) Law, calling it an “external problem.”

Cusi, who attended the 6th Northern Negros Electric Cooperative Annual General Membership Assembly in Manapla, Negros Occidental last Sunday, said there is “high demand for global oil while supply is insufficient.”

He cited the ongoing crisis in Venezuela, the reduction of Saudi oil production, and the US embargo on Iran as primary factors impacting the world’s oil supply.

He said the surge in fuel prices will impact electricity rates since power plants utilize oil.

“The government is looking for solutions to the problem,” he noted. “President Rodrigo Duterte is very sensitive to the needs and welfare of the people so he ordered the close monitoring of fuel prices and [to] make sure that our supply in the country will not be affected.”

One of the steps the government is taking is ordering the Philippine National Oil Corporation-Exploration Corporation to import oil and ensure a stable supply, he added.

Meanwhile, Negros Occidental third district Rep. Alfredo Benitez said the implementation of TRAIN Law came at the wrong time.

“One provision of the law is the excise tax on fuel, but remember, this is one of the safety nets put by Congress that, if the price of oil reaches $80 dollars, it would suspend the increase of excise tax on fuels,” the congressman explained. “We are now at the threshold, so that provision of the law would prevent further increase until the prices of fuel goes down.”

He added, any adjustment of the excise tax will be suspended because of the provision.

Oil companies announced a P1.60 per liter price hike on gasoline and a P1.20 per liter increase for diesel last week

Another increase is expected today./DGB, WDJ