MANILA, Philippines—Sen. Manuel Roxas II Wednesday urged President Gloria Macapagal-Arroyo to come up with an action plan to help Filipinos cope with the rocketing costs of basic goods and services.
“What’s the plan? Can our government tell us what it intends to do if oil prices went berserk at faster and higher levels than at present?” asked Roxas who has called for the suspension of the value-added tax (VAT) on fuel products.
World oil traded higher in Asia near record levels on Wednesday after OPEC’s president talked of uncertainty surrounding future investment in energy facilities to boost crude output.
In afternoon trade, New York’s main oil futures contract, light sweet crude for August delivery, was $1.33 higher at $142.30 a barrel from a record close of $140.97 on Tuesday at the New York Mercantile Exchange.
Brent North Sea oil for August delivery was $1.51 higher at $142.18 after an all-time settlement high of $140.67 in London Tuesday.
On Monday both contracts reached historic intra-day highs, $143.67 for the New York contract and $143.91 for Brent.
Roxas said the President must provide a comprehensive plan that addresses the problem, from foreign policy down to relief for the transport sector.
He said cutting the VAT on oil was still the most direct and most effective way to provide relief to the public. He has filed Senate Bill No. 1962 seeking a 6-month suspension of the VAT on oil products.
Malacańang assured the nation that it was implementing mitigating measures, including availing itself of $900 million in program loans from the World Bank and the Asian Development Bank.
The loans will beef up the country’s foreign exchange and help strengthen the peso, according to Finance Secretary Margarito Teves.
Teves told reporters that government would address inflation by increasing the supply of prime commodities in the country, particularly rice.
