‘It looks like government response is trailing the fast-moving international economic and political crisis.’
TWO years ago, during the height of the COVID-19 pandemic, the government imposed a complete lockdown on cities and towns, with individual mobility restrictions, imposition of curfew in urban areas, and strict implementation of health protocols. But a “state of economic emergency” was not imposed, or was it even discussed.
Now, as the Russian invasion of Ukraine is under way and things are looking to turn for the worse before they even get better, Malacañang announced that it would look into the possible declaration of a state of economic emergency in light of the impact of the series of fuel price hikes and the ongoing conflict in Ukraine.
Acting presidential spokesperson Martin Andanar said that the declaration of state of economic emergency is being studied by the Office of the Executive Secretary. According to him, the economic team of President Duterte has proposed government interventions to ease the effect of fuel price hikes and the conflict in Ukraine on the country.
One of these temporary measures is the promised P2.5-billion fuel subsidy to be given to drivers and operators of public utility vehicles to help relieve them from spiraling prices of petroleum products.
The Land Transportation Franchising and Regulatory Board (LTFRB) said it can swiftly distribute the funds to more than 377,000 beneficiaries covering public utility jeepneys, buses, UV Express vans, taxis, ride-sharing cars, tricycles and deliveries, provided the Department of Budget and Management downloads the funds.
Subsidy for PUVs is just the tip of the iceberg. Next to request subsidy is the local shipping industry, which is also reeling from high costs of fuel. Then, the local airline industry will be close behind.
Dubai crude, which is the benchmark for the Asian oil markets, has escalated from US$116 to US$118 per barrel, and is now sold at $122.53. The Philippines, being an importer of oil, is reeling from the rising prices but can barely cope with the situation.
Politicians such as Sen. Win Gatchalian have called on the Department of Trade and Industry and Department of Agriculture to aggressively “monitor any illegal acts of price manipulation, hoarding, profiteering and cartel activities.”
While all these are going on, Spokesman Andanar only announced that a declaration of an economic emergency would need a meeting of the whole Cabinet, again to discuss the Ukraine crisis and the local fuel and energy problems. It looks like government response is trailing the fast-moving international economic and political crisis.
