By Chloe Marie A Hufana And Erica Mae P. Sinaking, reporter
President Ferdinand R. Marcos, Jr. on Monday inaugurated a road link connecting major corridors in Metro Manila, a project designed as a way to curb fuel consumption by reducing congestion as high global oil prices put pressure on households and businesses.
The two-kilometer Manila-Cavite Toll Expressway (Cavitex)-C5 Link Segment 3B is expected to reduce travel time between Parañaque City and Taguig City from 90 minutes to about 15 minutes, reducing stop-and-go traffic that reduces fuel consumption and vehicle operating costs.
“This will result in significant savings on gasoline and fuel,” Mr. Marcos told reporters in Filipino, according to a transcript released by the Presidential Palace.
The Philippines, a net oil importer, remains vulnerable to supply disruptions resulting from the Middle East war. Local fuel prices have been rising since the outbreak of war with Iran, with energy officials warning that higher prices could continue.
The toll section is expected to serve about 36,000 vehicles daily and divert traffic from secondary roads connecting southern Metro Manila. To ease immediate cost pressure on motorists, citing increased travel during Holy Week, the President said the entire Cavitex network will remain toll-free until the end of April.
“There will be no toll as of now,” he said. “This is in consideration of our fellow citizens using the road, especially as Holy Week is going on and many people are traveling.”
Mr. Marcos linked the project to his administration's comprehensive response to rising fuel costs under the Integrated Package for Livelihoods, Industry, Food and Transport, or UPLIFT, which supports infrastructure and transportation interventions aimed at cushioning external shocks.
Last week, the President placed the Philippines under a one-year national energy emergency by issuing Executive Order No. 110 on what his administration described as an “imminent threat” to fuel supply and economic stability. The order created an interagency UPLIFT Committee to coordinate energy, agriculture, and transportation responses.
Malacañang said the country is expecting the arrival of 1.04 million barrels of diesel this week to strengthen the fuel buffer. The delivery follows efforts to diversify supply, including Indonesia's commitments on coal shipments and the recent influx of Russian crude.
Rising fuel prices have impacted food and transportation prices, leading to inflationary pressures and impacting economic growth. The peso has also weakened sharply since the conflict began and has surpassed the P60-per-dollar level.
To provide relief to vulnerable sectors, the government has introduced fuel and cash subsidies for transport workers and low-income households. Mr. Marcos also signed into law Republic Act No. 12316, giving him the power to cut or suspend fuel excise taxes, although Malacañang has said the implementation is under review.
'Not enough'
Meanwhile, members of the minority caucus in the House of Representatives have introduced proposals to help fuel subsidies as the Philippines enters its second week under a state of national energy emergency, arguing that more decisive action is needed to protect motorists and consumers from rising oil prices.
House Senior Deputy Minority Leader Leila M. de Lima and Caloocan Representative Edgar R. Aris said the Marcos administration should move beyond announcements and clarify how emergency powers will translate into concrete relief measures, while Mr. Marcos last week signaled openness to cutting or suspending fuel excise taxes.
“The President has to actually do that – either defer, suspend or cut the fuel excise duty,” he said. businessworld At a Liberal Party event in Makati City last week. He said rising fuel costs have become an additional burden for families already struggling with high food and transportation expenses.
“Given the growing energy crisis, the House and Congress must take more measures to assist the executive,” he said.
Mr Aris said the government had not yet clearly defined the scope of the declared energy emergency, including what powers it unlocks and how it would be used to stabilize prices or supply.
“There is no telling what it means,” he said in Filipino. “What are the benefits? It seems it was announced because there was a lot of noise, but it is not clear what the government will actually do.”
In addition to UPLIFT, other measures include the possible use of the Malampaya Energy Fund for fuel purchases, targeted subsidies, conservation policies and strict market monitoring.
Ms de Lima said subsidies should be expanded for transport operators, fishermen and farmers, arguing that support is inadequate given persistent fuel inflation. “This is not enough,” he said, adding that fare adjustments in the transport sector must strike a balance between comforting drivers and protecting passengers.
He also reiterated his demand for a re-look at the oil regulation law, which removed government control over fuel pricing and distribution. Ms de Lima said re-examining the law could give the state more tools to manage price shocks induced by global markets.
“Many sectors are now calling for it to be re-examined,” he said. “Is it time to repeal, amend or modify the oil regulation law to deal with the current crisis?”
To offset potential revenue losses from the fuel tax cut, some economists have proposed imposing a wealth tax. Malacañang said “nothing is under discussion” but cautioned that such a measure would be difficult to implement.
Ms de Lima said she supported imposing a tax on high net income earners to help deal with the crisis, provided the framework was properly designed.
“We cannot tax people who are barely surviving,” he said. “If one is filed, I will support it.”
Mr. Aris was more skeptical, saying the wealth tax could yield limited revenue given the low number of billionaires in the country. “The tax base is too small for our country's needs,” he said, questioning how much could realistically be increased.
As an alternative, Mr. Aris proposed a one-time “legalization fee” for undocumented foreign nationals, claiming that thousands of migrants might be willing to pay to regularize their status. He estimated that such a plan could generate trillions of pesos, although he offered no official data to support the number.
He also urged the administration to look beyond excise duty and examine the 12% value-added tax on fuel, saying the government is getting more revenue than expected as oil prices remain higher than initial assumptions.
With fuel costs rising due to inflation and transportation fares, minority lawmakers said policy choices in the coming weeks will determine whether the emergency powers will result in concrete relief or remain largely symbolic.