A consumers’ group in the Davao Region has asked President Ferdinand Marcos Jr. to bring down fuel prices and electricity rates across Mindanao to ‘unburden’ the residents in the island already reeling from steady increase in the rates of electricity and commodity prices.
‘Mindanawon consumer has it rough. Every trip to the grocery, every ride to work, and every monthly electricity bill reminds families across Mindanao that the cost of living continues to rise. A P1,000 grocery budget no longer stretches as far as it once did, while rising fuel and electricity prices continue to erode household incomes,’ the Davao Consumer Movement (DCM) said, saying that it hoped its demands be heard and announced as part of the President’s commitment when he makes his State of the Nation Address.
As consumers, ‘we demand the following long-term solutions to protect consumers: establish a long-term fuel price stabilization mechanism; reduce or remove the 12 percent VAT (value added tax) in electric bills; review of passed-on charges on to consumers; and establish new power generating facilities.’
It said the Philippines has its ‘ayuda’ system for those in the public transportation and agricultural sector. ‘However, we do not see this as sustainable. We believe the government can pursue several long-term options, including establishing a fuel price stabilization mechanism that cushions consumers from severe global oil price shocks, reviewing the 12 percent VAT on petroleum products, and studying the feasibility of a targeted or broader fuel subsidy program that balances consumer welfare with fiscal sustainability.’
It said that fuel and electricity are the foundation of every modern economy. Fuel moves people and goods, while electricity powers homes, businesses, industries, hospitals, and schools. When the prices of these essential commodities rise, the effects ripple through every sector, increasing the cost of transportation, food, housing, healthcare, and nearly every other basic necessity.
‘Mr. President, Mindanawons are not asking for temporary relief, they are asking for lasting solutions. Affordable fuel and affordable electricity are not luxuries; they are the foundation of every household and every business,’ the DCM said.
By pursuing long-term reforms that ensure stable energy prices and a more resilient power sector, ‘your administration has the opportunity to ease the cost of living, strengthen economic growth, and improve the daily lives of millions of Mindanawons, and ultimately, all Filipinos.’
The impact of rising fuel prices extends far beyond the cost of filling up a vehicle. As an essential input in transporting people and goods, fuel influences the prices of nearly every commodity and has become one of the country’s primary drivers of inflation. This is particularly significant for Mindanao, the nation’s food basket, where higher transport and logistics costs eventually translate into higher food prices for consumers across the Philippines.
And, meanwhile, electricity is also one of the sectors affected by higher fuel prices. Oil- and diesel-fired power plants face higher operating costs when global fuel prices rise, contributing to increased generation costs.
On top of the effects of fuel prices on power generation, structural weaknesses in the Philippine power sector also expose consumers to volatile electricity prices, it added.
‘We recognize the efforts of your administration to cushion consumers through temporary fuel subsidies, electricity bill relief measures, and interventions during periods of high energy prices. These measures have provided much-needed assistance. However, they address only the immediate symptoms of the problem rather than its underlying causes,’ it said.