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Oil shock exposes burden on Philippine poor, sparks calls for tax cuts and regulation

Mainline Protestant church leaders in the Philippines have called on the government to scrap oil taxes and regulate fuel prices, warning that war-driven price hikes are deepening the burden on poor and vulnerable sectors.

The National Council of Churches in the Philippines, on March 26, called for “genuine and sincere measures to control prices and minimize the effect” of the ongoing conflict involving the United States, Israel, and Iran on the local economy.

The group said “the onslaught of the instantaneous oil price hikes as consequence of the US-Israel instigated war” has “hit the people hard,” pushing many into “further daily misery” amid a worsening economic crisis.



The council said Filipinos were already struggling with rising costs and unemployment, citing “subsequent and massive price increases of basic and prime commodities” even before the escalation of tensions in West Asia.

Transport workers and activists demand lower fuel prices and the removal of VAT and excise taxes during a protest in Manila, as global oil price spikes driven by the Middle East conflict intensify pressure on household costs and livelihoods. Photo by Mark Saludes

Church leaders described the government’s response as inadequate, saying current measures “are merely palliative, if not performative,” with subsidies that “are insufficient and may not even last a few days.”

The group urged authorities to remove excise tax and value-added tax on oil products and repeal the Oil Deregulation Law, arguing that “high, excessive, and overlapping taxes imposed on the majority of poor Filipinos do not serve the common good.” 

It added that it is “deeply appalling” that taxes on oil remain “high, excessive, and redundant” despite corruption scandals and worsening economic conditions.

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The council called on churches to act “with compassion and solidarity” with sectors most affected, including jeepney drivers, workers, and producers, and to “combine it with acts of justice.”

The call came as transport workers staged a nationwide strike on March 26 to 27, drawing support from civil society groups.

The Council for People’s Development and Governance said the projected rise in diesel prices to ₱120 per liter amounts to “economic violence,” driven by policies that “disproportionately takes wealth from the poor.” 

Jeepney drivers and advocates join a transport strike in Manila, as transport groups stage a two-day protest over rising fuel prices and their impact on drivers’ livelihoods and public transport fares. Photo by Mark Saludes

It warned that for many drivers, “every liter of fuel consumed is a meal snatched from the mouths of their families,” underscoring how rising costs are eroding already fragile livelihoods.

Women and low-income households are bearing the brunt of the crisis, according to the Center for Women’s Resources (CWR), which said inflation is forcing families to make painful trade-offs.

CWR Executive Director Cham Perez said the situation reflects “the daily reality of women absorbing the impact of inflation,” saying “each price hike multiplies the burden on women managing households on near-zero budgets.”

For families dependent on transport income, the impact is immediate. Marissa Figueroa of PISTON Women said that before the recent hikes, her husband earned ₱700 to ₱800 a day driving a jeepney, but with fuel prices rising, “my husband’s income as a jeepney driver is now only ₱200 or ₱300, which is almost not enough,” leaving them at times with nothing but rice and bagoong, or going to bed hungry.

Environmental advocates also called for deeper reforms, saying the government’s energy emergency declaration must go beyond short-term relief.

A protester stands beside a wooden cross during the “Kalbaryo ng Mamamayan” (People’s Calvary) procession in Manila, while demonstrators call for the repeal of the Oil Deregulation Law and the removal of VAT and excise taxes on fuel amid surging oil prices. Photo by Mark Saludes

Greenpeace said the response so far has been “lackadaisical,” marked by “constant denials that we are in a crisis” and a lack of long-term direction as climate impacts worsen.

Climate campaigner Jefferson Chua said Executive Order 110 must deliver immediate support but also “pave the way for structural reforms” that address systemic problems “putting the burden of the worst impacts of economic shocks on the shoulders of ordinary Filipinos.”

He said measures should include suspending value-added tax, regulating prices, and shifting away from fossil fuels, warning that “the current tax system puts the burden on ordinary Filipinos who are already shouldering rising costs.”

Chua added that the crisis should serve as an opportunity to move beyond “business as usual” and “protect communities and build a fair, resilient future for all Filipinos.”

Across sectors, groups warned that without decisive action, the cost of global conflict will continue to fall on those least able to bear it.

President Ferdinand Marcos Jr. declared a state of national energy emergency earlier this week through Executive Order No. 110, as global supply disruptions linked to the Middle East conflict threaten fuel stability.

Authorities said they are taking steps to secure supply under the emergency measure.

The Department of Budget and Management has allocated PHP20 billion for the Department of Energy’s Emergency Energy Security Program, which includes procuring up to two million barrels of fuel to boost domestic supply. 

The fund will be transferred to the Philippine National Oil Company and its exploration arm to purchase refined petroleum products, augment LPG supply, and build inventory.

The DOE said the move “demonstrates the administration’s firm resolve to protect the Filipino people from external supply shocks” and will help “preserve market stability” and support critical sectors. 

Energy Secretary Sharon Garin described the allocation as “a strong intervention… to strengthen the country’s fuel security amid global oil market disruptions,” adding that the government is taking “concrete and proactive steps to secure fuel supply” and protect consumers.

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