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Small oil firms seek suspension of zero tariff

MANILA, Philippines - The country’s smaller oil players are seeking the suspension of zero tariff on imported petroleum products in lieu of the 250-percent hike in toll fees at the South Luzon Expressway (SLEX).

In a statement, Independent Philippine Petroleum Companies Association (IPPCA) chairman Fernando Martinez said it would be more advantageous to scrap the executive order eliminating oil tariff which will yield the same impact on motorists.

IPPCA is joining the clamor of militant groups and civil society for the government to reject the 250-percent toll hike at the SLEX.

Martinez said the proposed hike in toll fee will be an added burden to petroleum users and businessmen, which will eventually be passed on to consumers.

He said instead of forcing the public to cough up the additional amount for the toll rates, it would do well for government to suspend the implementation of Executive Order 890 signed by outgoing President Arroyo which mandated a zero tariff on crude oil and finished products.


Martinez said the implementation of the EO would result in a P10-billion revenue loss to the government.

“The said amount is enough to pay off the Malaysian investors in the SLEX expansion,” Martinez claimed.

IPPCA reiterated that the solution to this problem is to stop the implementation of the zero tariff on crude oil and finished products.