Rising inflation in the country blamed on Oil Deregulation Law

·Contributor
·2 min read
Motorists queue at a gas station a day before a huge price increase on petroleum products in Quezon City, Metro Manila, Philippines. Rising inflation in the country is attributed to soaring oil prices.
Motorists queue at a gas station a day before a huge price increase on petroleum products is implemented, on March 07, 2022 in Quezon City, Metro Manila, Philippines. The country’s inflation rate rose sharply to 5.4% in May 2022 from last month’s 4.9% (Photo by Ezra Acayan/Getty Images)

The country’s inflation rate rose sharply to 5.4% in May 2022 from last month’s 4.9%, according to the latest figures released by the Philippine Statistics Authority on Tuesday, June 7.

The rise of inflation is owed greatly to skyrocketing prices of global oil in the market, which also affects the price of other goods.

Although the government’s economic team has already foreseen an average of 3.7% to 4.7% inflation rate for the entire year, the government has so far only implemented targeted fuel subsidies and importation of certain goods.

Meanwhile, Anakpawis Party-list blames the government’s continued implementation of the Oil Deregulation Law, saying that the non-suspension of the excise tax and VAT on petroleum products remains to be a burden to the people.

The group said that the prices of basic goods have been on a steady rise since December “due to the incessant oil price hikes in October,” which makes these goods unaffordable to the general public.

“Hindi naman ito pinapansin ng gobyerno kahit na malaki ang epekto nito sa mga maralitang pamilya ng bansa. Napakalaking 80% ng kabuuang bilang ng pamilya sa bansa, ang nabubuhay ng mas mababa sa family living wage na P1,072 kada araw,” the group’s national president, Former Rep. Ariel Casilao, said.

(The government doesn’t care even though it has a huge effect on poor families in the country. It was a big 80% of the total number of families in the country who live below the family living wage of P1,072 a day.)

Patunay lang na walang solusyon ang mga neoliberal policies na liberalization, deregulation at privatization sa pagresolba sa economic crisis sa bansa. Bagkus, ito pa ang ugat ng krisis at sample na ang Oil Deregulation Law,” the former lawmaker added.

(This is proof that the neoliberal policies of liberalization, deregulation, and privatization will not offer any solution to the economic crisis in the country. Moreso, this is the root of all the crises like the Oil Deregulation Law.)

The group said that, on top of repealing the Oil Deregulation Law, the government should also support local production “as a crucial step to self-sufficiency and stabilization of prices, especially food products.”

Marvin Joseph Ang is a news and creative writer who follows developments in politics, democracy, and popular culture. He advocates for a free press and national democracy. The views expressed are his own.

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