[PRESS STATEMENT] Iloilo Consumers Group Holds Picket vs. Oil Price Hikes, Exposes Heavy Tax Burden Per Liter

PRESS STATEMENT
March 3, 2026

For Immediate Release
Iloilo Consumers Group Holds Picket vs. Oil Price Hikes, Exposes Heavy Tax Burden Per Liter

ILOILO City – Ilonggo consumers held a picket protest today at a Shell station in Jaro, Iloilo City, to oppose the latest big-time fuel price increases and to demand the scrapping of the Republic Act No. 8479 or the Oil Deregulation Law.

Beginning today, oil companies imposed another round of increases — Php 1.90 per liter for gasoline, Php 1.20 for diesel, and Php 1.50 for kerosene. This marks the 10th straight week of increases for diesel and kerosene and the 8th consecutive hike for gasoline, further compounding the burden on drivers and transport operators, workers, commuters, and ordinary consumers.

Fuel prices in Iloilo now range from Php 55 to Php 70 per liter, further burdening drivers, operators, workers, commuters, and ordinary consumers who are already struggling with the rising cost of living.

Since the start of the year, fuel prices have surged by Php 4.80 per liter for gasoline, Php 8.20 for diesel, and Php 6.20 for kerosene. Oil companies continue to attribute these increases to escalating tensions in the Middle East. However, even before that, fuel prices in the Philippines remain highly vulnerable to speculation and manipulation due to the Oil Deregulation Law, which allows automatic weekly price adjustments without effective state regulation.

One-Fifth to One-Third of Pump Prices Go to Taxes

Aside from deregulation, consumers also shoulder heavy government taxes embedded in every liter of fuel. Under the TRAIN Law, excise taxes are fixed at Php 10.00 per liter for gasoline, Php 6.00 for diesel, and Php 5.00 for kerosene, on top of which a 12% VAT is imposed.

At current Iloilo pump prices, diesel priced at Php 54.70 – Php 68.59 per liter carries an estimated Php 11.87 – Php 13.35 in combined excise tax and VAT — roughly 20%–22% of the total price. Gasoline priced at Php 55.70 – Php 60.09 per liter carries approximately Php 15.97 – Php 16.44 in taxes, or roughly about 27%–29% of every liter paid by consumers.

This clearly shows that roughly one-fifth of diesel prices and nearly one-third of gasoline prices go directly to government taxes, squeezing drivers, operators, workers, commuters, and ordinary families already reeling from relentless fuel hikes.

Estimated Tax Breakdown Per Liter (Current Iloilo Prices)

When fuel prices rise, VAT collections automatically increase because it is percentage-based. In effect, as pump prices go up, both oil companies and the government collect more, while drivers, workers, and ordinary families bear the burden.

Deregulation Favors Oil Giants, Not Consumers

The recurring price hikes expose the fundamental failure of the Oil Deregulation Law. Instead of protecting consumers from global volatility, the current system guarantees automatic price pass-throughs and secures corporate profits.

Higher fuel prices ripple across the entire economy — raising transport costs, pushing up food and basic commodities, and worsening inflation.

We reiterate our demands: scrap the Oil Deregulation Law (RA 8479); impose stronger state regulation and full transparency in oil pricing; suspend excise taxes under the Tax Reform for Acceleration and Inclusion Law; remove the 12% VAT on petroleum products; buy back and restore public control of Petron Corporation; and provide immediate relief for transport groups, workers and consumers.

No to oil price hikes!
Scrap EVAT and excise taxes on fuel!
Junk oil deregulation!
Regulate oil prices now!
Buy back Petron!

Reference:

PANAY CONSUMERS ALLIANCE
bayanpanay2014@gmail.com