(March 26): Philippine public transport drivers began a two-day strike on Thursday, stranding hundreds of commuters, as soaring fuel prices led to losses.
The strike comes a day after President Ferdinand Marcos Jr signed a law that authorises him to suspend or reduce the excise tax on petroleum products as the war in Iran keeps fuel prices elevated.
Each public transport driver loses 1,500-1,600 pesos (US$25-US$27 or $32-$34) a day as crude prices shot up by as much as 120% in the last two weeks, according to Mar Valbuena, who heads Manibela, which groups drivers and transport terminals across the country.
“Now our question is from whom or where will we recover those losses?,” he said in a Senate hearing. The law that Marcos signed doesn’t equate to an actual suspension in oil taxes, and so “the strike continues. The fight continues,” Manibela said on its Facebook page.
The law gives the president the power to halt or cut the tax when the average Dubai crude oil price reaches or exceeds US$80 per barrel for a month. Marcos sought the authority earlier this month as the Middle East conflict caused prices of domestic fuel products to surge. Congress passed the measure weeks later.
Brent crude rose towards US$104 a barrel after losing more than 2% on Wednesday, as the US and Iran offered conflicting comments on efforts to end the war that’s shut the Strait of Hormuz.
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The government dispatched free shuttle services for commuters affected by the strike. In some parts of metropolitan Manila, there were long queues of drivers on some roads waiting to get their 5,000-peso fuel subsidy.
Dozens of schools in the country were either closed or switched to online classes on Thursday. Ahead of the transport strike, the US Embassy in Manila advised its citizens to avoid areas affected by the protests, warning them of significant disruptions to public transport.
Fuel supplies are also getting scarce. “It is not a secret that it’s very hard to secure supplies now, so many of the traders are keeping quiet especially for deliveries in May. There has been no responses for tenders for May,” Raphael Capinpin, an executive director of the Philippine Institute of Petroleum told the Senate hearing.
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A day after declaring a national energy emergency, Marcos on Wednesday assured that the Philippines has enough oil supply for at least 45 days and is confident of securing a steady flow afterward.
The Department of Energy said it has activated a 20 billion-peso emergency fund to boost the country’s fuel security. It targets to import two million barrels of fuel to support domestic needs.
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